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Overview
Failing to identify data privacy, cybersecurity, and IT systems risks in the diligence process can turn a great deal into a giant headache. These are areas that are often misunderstood, or even overlooked, in sell side readiness and buy side diligence. Failure to properly prepare for and provide such information during the diligence process has been known to negatively impact sales price, particularly in recent months when the M&A landscape has changed. On the buy side, buyers have even greater pressure to meet financial targets which can easily skew off course when unexpected costs and resources are required to address gaps. In addition, rep and warranty insurers have become much more thorough in evaluating diligence in these areas increasing the likelihood of exclusions when privacy, cybersecurity, and IT systems items are not properly addressed.
Our session will address data privacy, cyber security, and information technology systems considerations in the M&A process to help avoid negative publicity, increased risk of cyber-attacks, compliance violations, and valuation impact, including:
- Data privacy, cybersecurity, and IT systems risk in M&A background (5 minutes)
- Discovering what types of information is collected, stored, and used (5 minutes)
- Overview of applicable data privacy, cybersecurity, and marketing law requirements (10 minutes)
- Examples of physical, technical, and administrative security policies and procedures (15 minutes)
- Asking the right questions to uncover data breaches (15 minutes)
- Reviewing IT agreements and transitioning applications and services post-close (10 minutes)
Faculty:
Talia Boiangin
Akerman LLP
Melissa C. Koch
Akerman LLP