Cybersecurity In M&A Transactions: Common Representations & Warranties

M&A in the digital era cannot ignore cybersecurity and its implications on a deal. Properly evaluating the cyber risks and seeking adequate contractual protection are essential for transactions where the value lies in digital assets.

Cybersecurity has long been vital for business and has become an even more critical expenditure in recent years. As most technology experts tend to admit, no system can be engineered to be perfectly secure or absolutely trustworthy.

In an increasingly data-driven world, businesses must focus on keeping their high-value and equally cyber-vulnerable digital assets intact. A cyberattack can quickly and substantially reduce the value of a deal and, if not identified in time, may carry-on the risks and contaminate the acquirer's systems as well.