Data Is a Key Asset and Value Driver in M&A
Transactions
Data is undoubtedly a highly valuable asset in M&A
transactions today: it acts as both a key competitive
differentiator and a strategic asset class. Companies have only
begun to unlock that value by focusing increasingly on data in
their corporate acquisitions. With the potential and benefits from
data, there are some inherent issues and risks too.
Raising Specific Legal Issues
Data is a complex asset class, so in an M&A transaction,
issues of data privacy and compliance, data ownership, data
exclusivity and professional secrecy will certainly arise. The
structure of the transaction will determine whether the data must
be segregated from the seller's environment, be migrated from
the seller to the buyer, or be integrated into the buyer's
environment. In addition, each phase of the transaction cycle
requires proper legal analysis and documentation, i.e. Due
Diligence, identifying and obtaining third-party
