Cross-Border M&A Due Diligence - Southeast Asian Data Center Acquisition

Advised an AI company on U.S. export control and sanctions due diligence for a proposed ~$40 million acquisition of a GPU-equipped data center operation in Southeast Asia. Prepared a regulatory compliance memorandum analyzing the transaction structure, the parties involved, and U.S. regulatory concerns under BIS export controls and the potential future implications of pending legislation such as the Remote Access Security Act. Identified critical risk factors during diligence, including criminal fraud charges against senior executives of the target entities in the host jurisdiction for allegedly diverting AI chips to China in circumvention of U.S. export controls, as well as an unresolved relationship between the nominated end-user and a sanctioned Chinese technology conglomerate. Advised on restructuring the deal mitigate successor liability for potential EAR violations.