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Immigration Oversight; Deal pros overlooking immigration issues in their due diligence may be inviting a costly hassle post close.

Publication: Mergers & Acquisitions: The Dealmaker's Journal
Publication Date: 01-JAN-09
Format: Online
Delivery: Immediate Online Access

Article Excerpt
Byline: Ken MacFadyen

When Swift Foods, a portfolio company of HM Capital, was raided by federal agents back in December of 2006, it served as a wake up call to many in M&A and private equity - immigration officials are watching, and they're out to make an example out of those who don't comply. For HM Capital, it was not only an embarrassing anecdote to its deal, but a costly oversight as well, as the raids - which led to almost 1,300 arrests at six different Swift locations, reportedly triggered a $50 million loss at the pork producer.

Since then, federal agents have moved higher up on the...

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