Deals Get Tougher Immigration Status Scrutiny From Lawyers

Immigration compliance is a new sticking point for mergers and acquisitions as companies fear inheriting undocumented workers or opening themselves up to enforcement actions.

Buyers and sellers alike have long considered immigration status as part of due diligence in crafting mergers. But this year, the issue has transformed from another checklist item to something that can delay deals or tank them altogether, immigration attorneys say.

“It definitely has the potential to kill a deal,” said Mary Kate Fernandez, business immigration attorney at Adams & Reese. “Some buyers are aggressive and buying up companies without being acquainted with workforce realities.”

Deals ...