The Need for Cyber Due Diligence in M&A Transactions
As technology continues to advance, allowing more companies to collect, share, and use data, privacy and cybersecurity due diligence in the M&A context becomes even more important. Unfortunately, companies often ask boilerplate questions about cybersecurity, privacy, and data without understanding the particular risks associated with the target company.
A lack of due diligence in evaluating a company’s cybersecurity controls and privacy requirements during the M&A process can result in a host of short-term and long-term problems. This may include subsequent data breaches or privacy complaints, loss of business revenues, higher cybersecurity premiums, underperforming stock value, and loss of consumer confidence.
Read the full article, written by Melissa Ventrone, Attorney at Clark Hill in Chicago.