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ARTICLE · 28 FEBRUARY 2025

The Final Fortification: Using Indemnification To Shield Your M&A Investment From Cyber Risks

Wilson Elser Moskowitz Edelman & Dicker LLP
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In the complex landscape of mergers and acquisitions (M&A), cybersecurity and data privacy have become pivotal concerns. Cyber threats can significantly impact the value and success of a deal...

United StatesTechnology

In the complex landscape of mergers and acquisitions (M&A), cybersecurity and data privacy have become pivotal concerns. Cyber threats can significantly impact the value and success of a deal, leading to financial losses, legal liabilities, and reputational damage. To mitigate these risks, indemnification provisions have emerged as powerful tools in M&A agreements, offering buyers a layer of protection against unforeseen cybersecurity and privacy-related issues.

Despite thorough due diligence and comprehensive representations and warranties, some cyber risks may remain hidden or emerge after the deal closes.

This is the third article in a three-part series on cybersecurity in M&A and navigating hidden risks. The first article discussed the importance of cybersecurity due diligence (https://reut. rs/42nv3g4), and the second focused on representations and warranties (https://reut.rs/4hIq5if ).

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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