Cleared for Discussion Podcast | Episode 54 | The Deal That Died at Diligence

In this episode, Tabetha Baume examines how mergers and acquisitions involving cleared companies can create significant national security and business risks because a facility clearance does not automatically transfer when ownership changes. She explores DCSA reporting requirements, facility clearance eligibility, key management personnel changes, contract novation, FOCI considerations, and CFIUS review to demonstrate how failing to address security requirements early can delay transactions, freeze new classified business, or even force a deal to be unwound. Her key message is that security must be integrated into the transaction from the beginning by involving the FSO early, notifying DCSA, understanding the buyer’s ownership structure, protecting critical cleared positions, and building regulatory timelines directly into the deal.