Pursuing global offsets in the international defense industry demands uncompromising corporate leadership. In between governments applying more business rigor in their international procurements and social pressures demanding ever increasing levels of transparency, there is no substitute for knowing what you don’t know.
A coterie of agents, brokers, dealers, and intermediaries feed at the same trough, with each one providing “check-the-box” assurances. Just as with domestic business enterprise activity, many proffer solutions. Some participants even offer quasi-legal and regulatory consulting services. And, virtually all provide an end-state service delivery that leaves solution implementation in the hands of the buyer.
Our Global Offsets practice provides legal services that focus on end-state realization. When it comes to offsets solutions the best course of action is a full-scope legal due diligence review with in-country investigators on the ground. The best way to be sure that a deal is sanitized against corruption and fully compliant is to have effective legal counsel – experienced attorneys who understand risk yet are mindful of fostering international value creation through strategic business relationships, industry knowledge and partnerships, as well as harnessed intellectual property.
Emerging markets in particular pose transparency challenges, yet what constitutes a legal risk does not have to be a deal-breaking red flag. Our Global Offsets lawyers provide thoughtful guidance that’s both practical and legal so that your decision is guided by thoughtful legal counsel who understand business rather than business professionals who claim legal expertise. It is far easier and more profitable to determine, deliberate, and dispose of legal risk at a deal’s inception rather than dispute legality and authority against the United States government, foreign governments, and/or your business partners.
While perception is everything from a marketing perspective, the notion of transparency and legal compliance are two distinct ambits whose sufficiency does not necessarily overlap. As such, a leader in business or a foreign government must be sure that offset deals are secure from legal risk while fulfilling his or her mandate to pursue value creation in all its forms. FCPA, ITAR, EAR, OFAC, and BIS – These are acronyms are tattooed to the back of every international defense executive’s forehead. Yet, despite substantial training, decades of experience, business savvy and acumen, every year there are myriads of federal investigations and prosecutions against those leaders who fail to heed their better judgement and follow the law. Given an increasing number of prosecutions involving criminal penalties and shifting sands in D&O insurance policies it behooves the captains of industry to get it right the first time.
Conservative estimates have outstanding offset obligations calculated at over $30 billion and growing rapidly every year for the next five to ten years. The opportunities are obvious and the risks, business and legal, are ever present punctuating the contours of the industry on a global scale. One can only ensure the imprimatur of excellence in leadership by retaining effective counsel who can plumb the depths of the unknown on your behalf.
Let us, at Rubin and Rudman LLP, shed the light of the law on your discreet international endeavors and clear a path for sustainable success.
