Hunton Retail Law Resource

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.