Mergers & Acquisitions Immigration Compliance

Corporate mergers, acquisitions, and restructurings often create complex immigration compliance issues—especially for businesses that employ foreign nationals. Changes in ownership or structure can impact work authorization, visa status, and green card sponsorships. Failing to assess immigration risks early in the process may lead to disruptions in employment, delays in processing, or even penalties from federal agencies.

Our St. Louis immigration lawyers help businesses navigate these challenges with confidence. Whether you’re acquiring a company, merging with another entity, or restructuring internally, we’ll help you understand your immigration obligations and ensure a smooth transition for your workforce.

What Is Immigration Compliance in M&A Transactions?

When a business undergoes a merger, acquisition, or other form of restructuring, the new or successor employer may inherit responsibility for employees currently on temporary visas or in the middle of green card sponsorship. Depending on the structure of the transaction—stock purchase, asset purchase, or internal reorganization—the immigration impact can vary.

Some employees may need updated filings, while others may not. Employers must also decide whether they qualify as a “successor in interest” for green card cases and whether to retain or re-execute I-9 forms. Proactive planning can help preserve work authorization and reduce legal risk.

Nonimmigrant Visa Considerations for Compliance

M&A transactions can directly affect employees working under temporary visa classifications such as:

• H-1B: If the successor entity assumes the same terms and conditions of employment (e.g., same role, location, salary), a new or amended petition may not be required. However, the new entity must meet Labor Condition Application (LCA) obligations and maintain updated public access files.
• L-1: Intra-company transfer visas require a qualifying corporate relationship between U.S. and foreign offices. Changes in ownership may affect this link and could result in visa ineligibility.
• O-1, TN, E-2, E-3: These classifications may require amended filings if the employer name, ownership, or job duties change substantially.

Understanding whether a visa amendment is required—and when—is essential to avoid unlawful employment and interruptions in status.

Green Card Sponsorship and Successor in Interest

Employers that are sponsoring workers for permanent residency must be especially careful during an acquisition or merger. The successor in interest doctrine allows a new employer to continue a green card process initiated by a previous company, but only under specific conditions.

To qualify:

• The new employer must assume all rights, duties, and liabilities of the original petitioning company.
• The job offered must remain the same.
• There must be continuity in the terms of employment and worksite location.

If these conditions are not met, the green card process may need to be restarted from scratch—adding years of delay and legal uncertainty. Our team can help assess your successor status and guide you in maintaining green card eligibility through the transition.

I-9 Compliance in M&A

One of the most overlooked risks during a business transaction is Form I-9 compliance. Depending on whether the deal is structured as a stock or asset purchase, the acquiring employer may have different options and obligations:

• Stock purchase: The employer entity remains the same, and existing I-9 forms may be retained. However, a review of those forms is strongly recommended to identify and correct errors.
• Asset purchase: If the buyer is a new employer, new I-9s must be completed for all acquired employees within three business days of the transaction’s closing date.

Failing to maintain accurate I-9 records can result in civil fines or government investigations—even for errors made before the deal closed. An internal audit and compliance strategy should be part of any M&A planning process.

Timeline of Immigration Action Steps

Timing is critical when managing immigration compliance during a business transaction. Here’s what to expect at each stage:

Pre-Closing:

• Review employee visa status and green card sponsorship history.
• Conduct I-9 audits to identify any inherited liability.
• Evaluate successor in interest eligibility and amendment requirements.

At Closing:

• Implement plan for visa continuation or amendment filings.
• Determine whether new I-9s must be completed.
• Begin notifying employees and updating government records if needed.

Post-Closing:

• File amended petitions where required.
• Update internal HR and compliance systems.
• Prepare for potential audits or inquiries.

Starting early ensures that no employee is left in legal limbo and that the new entity stays compliant.

How Our Immigration Attorneys Can Help

Our experienced attorneys work closely with corporate legal teams, HR departments, and outside counsel to manage immigration issues throughout the life of a transaction. We provide:

• Due diligence on immigration liabilities
• Internal audits of visa holders and I-9 records
• Successor-in-interest analysis and green card continuity strategies
• Filing of amended H-1B, L-1, or other petitions
• Guidance on I-9 retention and remediation
• Post-closing compliance planning and employee communications

We tailor our services to fit your industry, transaction size, and workforce needs—ensuring that compliance doesn’t get lost in the shuffle.

FAQs About Immigration Compliance in M&A

Do we have to refile H-1B petitions after a merger?

Not always. If job duties, location, and employment conditions remain the same, and the new employer assumes all obligations, refiling may not be required. We can help assess your specific case.

Can the green card process continue after the company changes hands?

Yes, if the new employer qualifies as a “successor in interest.” This allows the green card case to continue without restarting. Proper documentation and legal analysis are required.

Are we required to notify USCIS after the transaction?

In many cases, yes. Amendments or updates may be necessary for pending or approved cases. Our team can guide you through USCIS and DOL notification procedures.

What happens if we fail to review immigration compliance during a deal?

You could face visa disruptions, delayed green card cases, I-9 penalties, or even legal exposure if unauthorized employment continues unknowingly.

Contact an M&A Immigration Compliance Attorney

If your company is preparing for a merger, acquisition, or restructuring, don’t leave immigration compliance to chance. Our St. Louis immigration attorneys offer strategic support to help you assess risk, protect sponsored employees, and stay ahead of potential issues.

To have our team of immigration lawyers assist you with properly restructuring your business, contact us today!