FDI Screening Risk Assessment France

Assess Your FDI Screening Exposure

Assessing the strategic exposure of a transaction to foreign investment screening in France and State-related risk.

Certain transactions can no longer be assessed solely from a legal or financial perspective.

In sensitive sectors, a transaction may become exposed to issues of economic sovereignty, national security, industrial sensitivity or institutional perception that may directly affect its execution.

In this type of context, the question is not only whether a transaction theoretically falls within the scope of French foreign investment screening.

The real issue is to assess:

the level of transaction exposure;
the risk of regulatory difficulty;
potential sovereign sensitivities;
timing constraints;
the possible impact on deal feasibility;
the consequences for the competitiveness of the M&A process;
risks likely to affect deal certainty.

The FDI Screening Risk Assessment France developed by Relians enables investors, funds, industrial groups and M&A advisers to obtain a rapid preliminary strategic assessment of a transaction’s exposure to foreign investment screening in France and State-related risk.

This approach makes it possible to integrate deal certainty, structuring and institutional acceptability considerations at a very early stage, before entering into more binding transaction phases.

Why Certain Transactions Require a Specific Strategic Assessment

In sensitive transactions, risk does not depend solely on the applicable legal rules.

Two legally comparable transactions may be assessed very differently depending on:

the sector concerned;
the nature of the investor;
the geopolitical environment;
the industrial context;
sovereignty considerations;
the sensitivity of the technologies involved;
the institutional perception of the transaction.

Certain acquisitions become sensitive not only because of the applicable law, but because they involve assets considered strategic for the economy, industry or national interests.

In this type of environment, the State itself becomes a central variable in transaction execution.

A lack of anticipation may then have direct effects on:

timing;
valuation;
the credibility of a competitive process;
authorization conditions;
the ability to secure the transaction;
the overall perception of the transaction by public authorities.

The FDI Screening Risk Assessment France was designed precisely to address this phase of strategic uncertainty before major transaction decisions are made.

Service Overview

The FDI Screening Risk Assessment France is a strategic transaction advisory service designed to provide a rapid and operational assessment of a transaction’s exposure to foreign investment screening and State-related risk.

The service is generally used:

before signing an LOI;

before submitting a binding offer;

before entering into exclusivity;

during the due diligence phase;

before structuring a joint venture;

before acquiring sensitive activities;

before investing in a French technology company.

The objective is not merely to identify a theoretical regulatory risk.

The approach developed by Relians is designed to assess the concrete implications of the transaction from a:

This assessment enables decision-makers to rapidly integrate issues likely to affect deal execution and to guide the first structuring decisions.

Typical Situations

The FDI Screening Risk Assessment France is particularly suited to transactions involving:

dual-use technologies;
critical infrastructure;
cybersecurity activities;
sensitive AI technologies;
defense or aerospace activities;
semiconductors;
space technologies;
sensitive cloud or data activities;
strategic energy assets;
quantum technologies;
critical digital infrastructure;
strategic supply chains.

The service is also particularly useful in the following situations:

acquisition by a non-European investor;
transaction involving a sovereign wealth fund;
sensitive industrial carve-out;
technology joint venture;
acquisition of a strategic French player;
transaction exposed to economic sovereignty issues;
competitive process requiring strong transaction visibility;
preliminary discussions with French authorities;
structuring of a complex cross-border transaction.

What the Assessment Provides

The FDI Screening Risk Assessment France makes it possible in particular to:

carry out a preliminary assessment of French FDI screening exposure;
assess the level of regulatory risk;
identify potential sovereign sensitivities;
assess institutional issues related to the transaction;
analyze sectoral and technological sensitivities;
anticipate potential authorization difficulties;
identify friction points likely to affect execution;
contribute to the initial structuring of the deal;
improve transaction visibility before commitment;
assess risks likely to affect deal certainty

The analysis may also make it possible to assess the general level of exposure of the transaction according to several sensitivity levels:

low;

moderate;

high;

critical.

This approach strengthens the ability of investors and advisers to anticipate execution constraints before they become major transaction obstacles.

In transactions exposed to the State factor, anticipation is often a decisive element of deal feasibility.

What the Service Is Not

The FDI Screening Risk Assessment France is not:

The Relians approach is based on a different logic.

It is a strategic assessment of the real exposure of a sensitive transaction.

This approach takes into account:

the transaction context;
sovereign issues;
institutional perception;
industrial dynamics;
execution risks;
political or strategic constraints likely to affect the transaction.

The objective is to help decision-makers understand not only whether a transaction may theoretically be authorized, but above all under what conditions it may be executed credibly and securely.

Deliverables

The service results in the delivery of a structured work product that may include in particular:

a preliminary French FDI screening qualification note;
a transaction sensitivity scoring;
a State-risk analysis;
a mapping of identified sensitivities;
an assessment of sovereign issues;
identification of potential critical points;
a preliminary analysis of authorization risks;
an assessment of the level of transaction risk;
initial strategic recommendations;
nitial structuring options;
an assessment of potential institutional sensitivities.

The deliverables are designed to be directly usable by:

The objective is to provide a clear, rapid and operational view of the issues likely to affect execution of the transaction.

Why Relians Intervenes Upstream in Sensitive Transactions

For more than twenty years, Relians has advised on transactions exposed to the State factor, economic sovereignty issues and foreign investment screening considerations.

The firm advises on sensitive transactions involving in particular:

foreign investors;
strategic assets;
critical technologies;
sensitive industrial sectors;
economic security issues;
complex cross-border transactions.

Relians has developed recognized expertise in foreign investment screening, State-related risk and the securing of sensitive transactions in France.

The firm’s approach is based on the articulation of:

This approach makes it possible to integrate at a very early stage the constraints likely to affect the feasibility of a transaction.

Relians therefore intervenes as a strategic transaction adviser focused on:

— FAQ —
Relians Services

What is an FDI Screening Risk Assessment in France?

An FDI Screening Risk Assessment in France is a preliminary strategic assessment designed to evaluate a transaction’s exposure to foreign investment screening and State-related risk in France.

How do investors assess FDI risk in France?

Investors generally assess FDI risk by analyzing the nature of the investor, the sensitive activities involved, the sovereign implications of the transaction and the potential impact of French foreign investment screening regulations on deal execution.

When should a French FDI screening assessment be carried out?

It should be carried out as early as possible in the transaction process, ideally before a firm commitment, binding offer or entry into exclusivity.

Why integrate State-related risk at the preliminary stage?

Because certain execution constraints emerge very early and may affect the timetable, structuring or feasibility of the deal.

Does the FDI Risk Assessment replace legal analysis?

No. It is a strategic transaction assessment designed to evaluate the real exposure of the transaction and its potential implications for deal execution.

Obtain a Preliminary Strategic Assessment

Certain transactions require a rapid assessment before any binding decision is made.

The FDI Risk Assessment France makes it possible to obtain rapidly:

an initial strategic qualification of French FDI screening exposure;
a preliminary analysis of State-related risk;
an assessment of potential sovereign sensitivities;
an initial reading of transaction execution constraints;
initial structuring guidance.

The service is particularly suited to transaction contexts requiring:

Relians advises investors, funds and industrial groups facing sensitive transactions exposed to:

Discuss your transaction confidentially with Relians.