Description
As companies pursue mergers and acquisitions, they gain not only new assets and market opportunities but also inherit the cybersecurity vulnerabilities of the acquired entities. These may include outdated IT infrastructure, improperly managed data, or weak security protocols—any of which can create serious exposure to cyber threats. This includes how the target company collects, retains, and manages personal data, which can present, additional layers of risk. Overlooking cybersecurity and data privacy risks during M&A due diligence can leave both the buyer and its financiers vulnerable to significant consequences, including reduced revenues, profits, market value, competitive standing, and brand reputation.
Thoroughly assessing cybersecurity and data privacy risks during due diligence is critical to preventing the fallout from a post-acquisition breach. Buyer’s counsel should identify and address these risks at every stage of the deal lifecycle—from the initial evaluation of the target company, through contract negotiation and drafting, to closing. Similarly, counsel overseeing the financing of deal on behalf of lenders should carefully review the buyer’s diligence materials, both to identify potential exposure and to inform decisions around risk mitigation strategies, including the possible procurement of insurance.
Assessing cybersecurity and data privacy risks during M&A due diligence is critical to avoiding the costly consequences of post-acquisition breaches and legal violations. Join our experienced faculty for an in-depth exploration of key cybersecurity and data privacy considerations at every stage of the M&A process—before, during, and after the transaction.
This program will focus on how to evaluate prospective deals, identify and protect critical assets, mitigate cyber risks, and harness emerging technologies to strengthen security throughout the deal lifecycle, including:
- How to develop and execute a comprehensive cybersecurity due diligence plan
- Common obstacles in reviewing data privacy provisions in buy-sell agreements
- What’s documented vs. what’s practiced: Effectiveness of policies and procedures
- Essential questions counsel must ask to uncover cybersecurity and data privacy risks
- Areas where attorneys and clients should probe more deeply during due diligence
- Legal and practical limitations on the scope of advisement during the M&A process
- How are lenders leveraging cybersecurity issues when financing acquisitions?
- The role of cybersecurity in insurance underwriting and risk allocation
This program is for attorneys wanting a better understanding of the cyber and data privacy risks that bring uncertainty to the M&A transactions.