Recent CFIUS legislation has had significant effects on the range of transactions and investments that are potentially subject to regulatory review. Navigating the review process can be a daunting task, and it appears that CFIUS is moving quickly and proactively to stop risky deals from closing. Although CFIUS is largely a voluntary process, recent mandatory filing requirements have modified the criteria that triggers a mandatory filing. Should companies be concerned about CFIUS stepping up their investigations into non-notified transactions, or deals that were closed without a filing? What types of transactions are subject to a mandatory review? What sectors will be impacted under the new TID (technology, infrastructure, and data) rules?
Also, Presidential administration changes have historically brought uncertainty to the M&A market. How will the Biden administration’s approach shift the United States’ openness to foreign direct investment? What countries will attract more scrutiny? What key risk areas will dealmakers need to be aware of when evaluating investment structures and the timing needed to close a deal?