In this video of our series, Sanctions 360, we consider the sanctions risk in the context of structuring an M&A transaction.
With their ever increasing scope sanctions risks from being a rarity becomes an common element of structuring. Even a sale of a vinery with no apparent sanctions element is subject to this risk, should, for example, a considerable part of its sales be to the US clients and, accordingly, be subject to potential US tariffs.
Sanctions risks may arise in various ways (e.g., with respect to the banks and/or existing contracts) and given that they may fundamentally affect the law-fullness, timing, cost, and closing risks of an M&A transaction, their consideration should and, indeed, did become a norm in the same way as, for example, the consideration of regulatory, litigation, or environmental risks.
Thank you for watching!