Missiles, Malware and Merger Management: Why Cybersecurity and Data Privacy Matter to M&A Practitioners

What does a nuclear missile accident have in common with a cybersecurity or data privacy issue in M&A?  In both cases, small missteps can lead to wide-ranging and potentially catastrophic consequences.  As an M&A practitioner, however, you are much more likely to encounter a cybersecurity or data privacy than a missile accident.  That’s because there is no area in M&A and integration practice that is as complex, rapidly changing, and risky as cybersecurity and data privacy.

The first installment (link) begins by describing some cybersecurity and data security risks and the scope of some potential hazards to a transaction.  In short, these issues can jeopardize a successful integration and put at risk the value being sought in a transaction.  In the following three installments, we look at three of these cybersecurity and data privacy issues – compliance programs, data privacy policies and cyberattacks – and offers some best practices that may mitigate these risks.

The second installment (link) describes ways that an acquirer’s – and a target company’s – compliance programs can play a significant role in the success of a merger or integration.

The third installment (link) describes the importance of data privacy policies in realizing the value of a transaction.  The value of data collected and used by businesses has become a growing part of transaction value. As a result, understanding the ways in which data can be used – and ways it can’t be used – is critical to realizing this value.

The final installment (link) describes how a transaction can actually increase the risk of a cyberattack, as well as different ways that cyber risks can arise and impact a merger or integration.

Joe Castelluccio is a partner in Mayer Brown LLP’s Corporate & Securities practice in New York. He helps clients balance risks and opportunities in global mergers and acquisitions with a combination of legal acumen and business experience. He focuses his practice on complex, cross-border M&A, joint ventures, equity transactions and other corporate matters.

For more information please visit the Mayer Brown website.

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