The agreements a foreign direct investment involves
Foreign direct investment usually involves more than one agreement. There are the transaction documents, such as a purchase agreement for an existing business or construction and land contracts for a new site. There may also be agreements with state and local governments covering tax credits, grants, infrastructure, or training support. Federal programs that fund manufacturing in certain sectors have their own award agreements with detailed conditions. Each of these interacts with the others, and their timelines rarely line up on their own. Which entity signs each agreement, and whether the parent company backs its obligations, affects where liability ends up.
Commitments and clawbacks
Incentive agreements typically tie benefits to performance commitments, such as jobs created or capital invested, measured over a set period. If targets are missed, benefits may be reduced or repaid, and the formulas for that clawback deserve close attention. Reporting obligations can be detailed and continue well after the facility opens. Market changes, supply problems, or tariff shifts can make original projections hard to meet, so flexibility for delays and force majeure is worth negotiating. Public announcements and political expectations can make later renegotiation harder, which is another reason to get the terms right at the start.
Coordinating the investment
We work with your team and local advisers on the sequence of site selection, incentive negotiations, entity formation, permits, and the main transaction. We review whether the investment may need CFIUS analysis, especially if it involves an acquisition, sensitive technology, or property near military installations. We also consider how approvals or reporting in your home country fit the closing timeline. In a first consultation we review the term sheets or draft agreements you have and identify the provisions that carry the most long-term risk. Where several sites are competing for the project, we help you compare the terms on offer and not only the headline amounts.
