Glossary · Deal process
FDI screening
Also called foreign direct investment screening, foreign investment screening
Definition
FDI screening is a government review of foreign buyers investing in sensitive sectors, such as defence, energy, technology and healthcare. Many countries now require notification before closing. Like merger control, it adds time and conditions to cross-border deals, and it is a frequent reason those deals slip.
Where FDI screening comes up
On this site, in our guides and in the conversations we've written up.
Related terms
Merger control The review by competition authorities that larger deals need before they can close. Binding offer A buyer's final offer after due diligence, usually with a marked-up purchase agreement attached. Bolt-on acquisition A smaller company bought to add to an existing platform business, common in private equity. Buy-side The buyer's side of a deal: the acquirer or investor, and the advisers who help them find, check and price a target. Carve-out The sale of a division or business unit that has to be separated from its parent company. Clean team A small, ring-fenced group allowed to see a competitor's sensitive data during a deal, under strict rules. Corporate development The in-house team that finds, runs and integrates a company's acquisitions and partnerships. Distressed M&A Buying or selling a business in financial trouble, often under time pressure or in insolvency.