Fernandez Interviewed on Rise of Immigration Due Diligence in M&A Deals

Adams & Reese Business Immigration attorney Mary Kate Fernandez was interviewed by Bloomberg Law in the article, “Deals Get Tougher Immigration Status Scrutiny from Lawyers.”

As immigration enforcement has intensified under the Trump administration, business immigration and employment attorneys, including Fernandez, have taken on roles as specialty counsel in M&A transactions, ensuring compliance and verifying that acquiring companies are protected from workforce loss issues and employment compliance exposure.

“People know that this is on the administration’s radar, and I don’t think it’s a quick trend,” said Fernandez, who at Adams & Reese focuses her practice exclusively on business immigration, representing employers across a range of industries.

Fernandez said buyers and sellers have always considered immigration status as part of due diligence in M&A deals, but this year, the issue has transformed from another checklist item to something that can delay deals or tank them altogether. “It definitely has the potential to kill a deal. Some buyers are aggressive and buying up companies without being acquainted with workforce realities,” said Fernandez.

In the article, Bloomberg Law cited a Deloitte article that M&A players expect both the value and number of deals to increase over the next year. However, at the same time, the U.S. labor force lost 750,000 foreign-born workers in the first half of the year due to the Administration’s crackdown on immigration into the U.S. Corporate raids have ticked up on companies suspected of employing undocumented workers, and the U.S. Department of Labor announced that it will soon investigate companies’ H-1B visa practices.

Risk depends on the industry, Fernandez said. Tech buyers may worry more about H-1B compliance, whereas construction buyers may focus on I-9 form verification, she said.

Fernandez is the author of “Visa Viewpoint” – an Adams & Reese thought leadership blog dedicated to offering insights and analysis for employers on business immigration law.

With experience guiding clients through U.S. immigration regulations, Fernandez helps businesses sponsor and retain skilled talent from around the world. She also assists employers in addressing a wide range of employment issues related to immigration and international employment, ensuring they remain compliant with regulations. Fernandez has experience liaising with the Department of Labor (DOL), U.S. Citizenship and Immigration Services (USCIS), U.S. Coast Guard (USCG), Department of State (DOS), and U.S. consulates worldwide.