In a video roundtable series, Hunton & Williams LLP partners Lisa J. Sotto and Steven M. Haas and special counsel Allen C. Goolsby, along with Stroz Friedberg’s co-president Eric M. Friedberg and Lee Pacchia of Mimesis Law, discuss the special consideration that should be given to privacy and cybersecurity risks in corporate transactions.
In M&A transactions, it is critical for parties to consider the risks and potential liabilities associated with inadequate privacy and cybersecurity practices — whether arising from regulatory violations, actual data breaches or a host of other issues. Even companies that rely less on personal data for their day-to-day operations need to ensure that their company’s confidential and proprietary information is well guarded long before an M&A transaction arises. Buyers need to assess these risks carefully during due diligence because they can be significant and materially affect a buyer’s valuation of a seller’s business. Moreover, issues that are discovered after an M&A transaction is completed could expose companies to massive liabilities such as expensive consumer class action litigation, intrusive government investigations, hefty remediation costs and other expenses.
Watch the full first segment, The Issue and Why It Matters.
Watch the full second segment, How to Prepare and Best Practices.