Cybersecurity In M&A Transactions

Firms engaged in mergers and acquisitions need to ensure from the outset that their communications are taking place in a cyber-secure environment. Online data rooms are rich targets for cyber criminals. The flow of information between buyers, targets and their consultants is particularly tempting, so a secure online data room is essential, but in and of itself, may not be enough.

Cybersecurity in the context of M&A is about much more than keeping the process secure: it is key to the value of the deal. The acquisition of one firm by another requires that the buyer determine the value of the target corporation. This necessarily includes an assessment of risk and compliance issues. The extent to which a target corporation has maintained a cybersecurity strategy, and has the requisite systems and processes in place, is a major risk and compliance consideration.