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OPINION
The overlooked risk
T here has been a flurry of merger and acquisition activity in the AEC industry in the last few years. There were 427 transactions announced in 2023, and AEC firms saw a 33 percent increase in M&A deals in Q3 of 2024, year-over-year. There appears to be similar momentum in the early months of this year . Neglecting immigration compliance during mergers or acquisitions can expose firms to costly consequences.
Nam Douglass
Immigration is rarely the first item on the due diligence checklist for AEC firms engaged in merger or acquisition discussions. However, overlooking this aspect of compliance could cost significant resources, and lead to financial and even criminal consequences, particularly in the current environment of heightened employer enforcement. Worksite compliance matters have been featured heavily in the news in recent months. These stories tend to focus on audits, raids and visits from the Department of Homeland Security fraud unit, all of which remain critical components of employer compliance given ongoing enforcement efforts. Shoring up these aspects of your internal business practices is essential. However, the potential loss of key personnel or
unanticipated costs to retain foreign national employees whose status is impacted by organizational restructuring through a merger or acquisition, creates its own significant compliance concerns. Lapses in work authorization or the inability to retain critical employees has the potential to delay project deliverables, add significant expenses, and hinder the continuity of services that can frustrate business development. But with strategic planning, AEC firms can proactively assess and address compliance issues that allow for an informed plan to transition newly acquired foreign national employees, retain critical talent, and comply with regulations. Best immigration practices during the merger and acquisition process include:
See NAM DOUGLASS, page 10
THE ZWEIG LETTER SEPTEMBER 15, 2025, ISSUE 1601
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