It's no secret that the world is becoming increasingly
data-driven, and the business world is no exception. The ability of
a business to effectively store and protect its data is often
integral to its value. Buyers in M&A transactions acquire both
the assets and liabilities of the target entity and may risk losing
immense value if the target entity has a history of poor
cybersecurity practices. Buyers would, therefore, be wise to
consider the target entity's cybersecurity preparedness in two
key contexts: (1) during the due diligence process, and (2) as part
of the purchase agreement's preparation and negotiation.
Cybersecurity and Due Diligence
A cyber-attack can quickly and substantially reduce the value of
a target entity. It can cause the target to suffer reputational
damage, and for public companies, it can negatively affect the
target entity's share value. The federal Personal
Information Protection and Electronic Documents Act
("PIPEDA"), Alberta's Personal
