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 ).