Joshua J. Freemire and Daniel L. Fahey, Members of the Firm in the Health Care & Life Sciences practice, co-authored an article in Bloomberg Law, titled “Agency Backlog Can Slow a Deal, but It Doesn’t Have to Derail It.”
Following is an excerpt:
As agencies spend more time on transaction review and approval requirements, backlogs are becoming more common. Across federal, state, and local agencies, attorneys increasingly face extended processing times for licenses, approvals, filings, and adjudications that are critical to client transactions and operations.
Attorneys can’t eliminate agency backlogs, but they can meaningfully reduce risk and improve outcomes through deliberate strategy and advance preparations and with practical, attorney-driven tactics for managing agency delay.
Backlogs as Risk
Agency backlogs create more than scheduling inconvenience. They can jeopardize deal timelines, endanger financing, delay market entry, trigger contractual defaults, and expose clients to compliance risk when approvals don’t arrive on schedule.
Accordingly, attorneys should approach agency backlogs as a form of regulatory risk that requires active management. That mindset informs the following tactics:
- Negotiate realistic inside and outside dates. …
- Use proactive communication ahead of deadlines. …
- Ensure all communications are in writing—or promptly confirmed in writing. …
- Identify responsive contacts—and include them consistently. …
