Curated News
By: NewsRamp Editorial Staff
September 15, 2025
M&A Immigration Pitfall: Visa Status Doesn't Automatically Transfer in Deals
TLDR
- Buyers can gain a strategic advantage by structuring deals as stock purchases to maintain immigration continuity and avoid costly new visa filings for foreign talent.
- Stock deals preserve the legal employer entity and immigration status, while asset deals require new filings and careful assessment of successor-in-interest qualifications.
- Proper immigration planning during mergers ensures foreign workers maintain legal status, protecting their livelihoods and contributing to diverse, skilled workplaces.
- U.S. work visas are tied to specific employers, jobs, and locations, making deal structure critical for maintaining foreign employees' legal work authorization.
Impact - Why it Matters
This news matters because corporate mergers and acquisitions are increasingly common in today's global economy, and foreign workers constitute a significant portion of skilled talent in many industries. Failure to properly handle immigration transitions during M&A activities can result in sudden loss of work authorization for valuable employees, disrupting business operations and potentially violating immigration laws. Companies risk substantial penalties, legal challenges, and damage to their reputation if they don't navigate these complex regulations correctly. For foreign workers themselves, improper handling could mean unexpected job loss, visa denials, or even forced departure from the United States, making this guidance crucial for both employers and employees involved in corporate transactions.
Summary
In corporate mergers and acquisitions, immigration status does not automatically transfer between employers, creating critical compliance challenges for foreign workers on U.S. visas. The article explains how deal structure determines immigration requirements: stock deals typically maintain the same legal employer entity, allowing continuity for H-1B, E-3, TN, and L-1 visa holders without immediate filings, while asset deals create a new employing entity that may require entirely new sponsorship petitions and I-9 verification processes. The successor-in-interest doctrine becomes pivotal in determining whether buyers can assume existing immigration obligations, particularly for pending green card applications.
The piece provides a comprehensive practical checklist for navigating these complexities, emphasizing that any changes to worksites, job duties, or locations can trigger mandatory Labor Condition Application (LCA) filings and petition amendments. Failure to properly handle these requirements can result in Requests for Evidence, denials, or loss of work authorization. The guidance covers I-9 and E-Verify updates, communication strategies with employees, and compliance with anti-discrimination laws while ensuring smooth integration of foreign national employees during corporate transitions.
Authored by immigration attorney Mary Kate Fernandez, who focuses exclusively on business immigration and represents employers across various industries, the article draws on her extensive experience with regulatory agencies including the Department of Labor, USCIS, and Department of State. The content originally appeared on citybiz, providing valuable insights for companies engaged in mergers and acquisitions involving foreign talent.
Source Statement
This curated news summary relied on content disributed by citybiz. Read the original source here, M&A Immigration Pitfall: Visa Status Doesn't Automatically Transfer in Deals
