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ARTICLE · 13 NOVEMBER 2019

Cybersecurity In M&A Transactions: Friend Or Foe?

The heavy reliance on technology in today's data driven world means that cybersecurity threats must be taken seriously.

CanadaTechnology

The heavy reliance on technology in today's data driven world means that cybersecurity threats must be taken seriously. More specifically, with respect to M&A transactions, a target's cybersecurity mechanisms has become an important part of the due diligence consideration. Indeed, it is important to have a firm grasp on the nature and extent of a target's cybersecurity vulnerabilities, the likelihood of a breach, and the procedure in place to remedy a breach, if necessary. These considerations have the power to significantly alter the value of a transaction, or even derail it entirely.

With the introduction of EU's General Data Protection Regulation – which caused ripple effects of tightened privacy legislation in other jurisdictions – compliance with the regulatory regime is an important factor. This is particularly because some targets may not even know that they are subject to certain regulations, and may be acting offside. For example, the GDPR's strict privacy

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