--- title: Reduce the Risk of Hidden Third-Party Time Bombs description: Read our new article on how compliance problems can make acquisitions a poisoned pill and here’s how to avoid them. image: https://www.blueumbrella.com/hubfs/Feature-image---Blog-Feb-21.png --- [![BU Primary Logo_1. Triangle Main](https://www.blueumbrella.com/hubfs/00_Redesign2022/Blue%20Umbrella%20Branding/BU%20Primary%20Logo_1.%20Triangle%20Main.png "BU Primary Logo_1. Triangle Main")](https://www.blueumbrella.com/) [![BU-Primary White Logo](https://www.blueumbrella.com/hubfs/00_Redesign2022/Blue%20Umbrella%20Branding/BU-Primary%20White%20Logo.png "BU-Primary White Logo")](https://www.blueumbrella.com/) #### products Blue Umbrella delivers a potent combination of powerful risk management tools, innovative technology and research excellence. [Explore all products](https://www.blueumbrella.com/products) [Status](https://www.blueumbrella.com/status) For large enterprises with tens of thousands of business relationships, Status integrates all information and workflows to run a global compliance program. [Research](https://www.blueumbrella.com/research) Blue Umbrella offers tailored third-party risk intelligence reports, safeguarding organizations from regulatory or reputational risk. Risk Management ## Reduce the Risk of Hidden Third-Party Time Bombs ![Blog-Section0-Header-Image-Bees](https://cdn2.hubspot.net/hubfs/5164326/Nov%202019/Phase%202/Images/Blog-Section0-Header-Image-Bees.png) Compliance problems that arise through mergers and acquisitions are probably one of the most underrated deal risks out there, but they can be avoided. I believe the most effective approach to minimizing third-party problems can be implemented at the deal-making stage. An acquisition benefits everyone when there is confidence that it is legally sound as well a lucrative. I recently contributed an article to *Chief Executive* that outlines how deal making and compliance teams can work together to achieve great deals while reducing the risk of hidden time bombs. In part: “As global M&A activity surges after a brief COVID-related slump, it’s a sure bet that some acquiring companies will be inheriting unpleasant surprises along with their new partners. Compliance problems arising from third-party relationships taken over in acquisitions are probably one of the most underrated deal risks out there. The risks are most acute for large companies acquiring firms outside of North America, often picking up ecosystems of several thousand third parties in the process. The danger becomes sharper still for deals being done in regions such as Asia and Africa where levels of corruption are relatively high. To minimize these risks, compliance due diligence and planning needs to be an integral part of the deal-making process rather than an afterthought as is too often the case.” READ THE FULL ARTICLE – [The Hidden Trapdoor in M&A Deals](https://chiefexecutive.net/the-hidden-trapdoor-in-ma-deals/) [Risk Management](https://www.blueumbrella.com/insights/tag/risk-management) ![Allan Matheson](https://www.blueumbrella.com/hubfs/02-Headshot.webp) ### [Allan Matheson](https://www.blueumbrella.com/insights/author/allan-matheson) Allan personifies the company vision — he is leading the movement to better business relationships in a more ethical, compliant, transparent environment. As CEO of Blue Umbrella, Allan is responsible for strategic development and execution, management, and embodying the corporate culture. 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