Managing Cyber Risks In M&A Transactions

This is part six of a series focusing on current M&A trends, opportunities and challenges

Cyber risks are an important consideration regarding all merger, acquisition and financing ("M&A") transactions. Cyber risks can affect the viability and value of an M&A transaction, influence the nature and terms of a transaction, and in some circumstances cause the parties to abandon a transaction. In addition, parties to an M&A transaction and their directors and officers (if applicable) might be legally obligated to address cyber risks in connection with the transaction and incur potentially significant liabilities if they fail to do so. For those reasons, parties to an M&A transaction should appropriately address cyber risks throughout the transaction life cycle.