This is part six of a series focusing on current M&A trends, opportunities and challenges
Cyber risks are an important consideration regarding all merger, acquisition and financing (“M&A”) transactions. Cyber risks can affect the viability and value of an M&A transaction, influence the nature and terms of a transaction, and in some circumstances cause the parties to abandon a transaction. In addition, parties to an M&A transaction and their directors and officers (if applicable) might be legally obligated to address cyber risks in connection with the transaction and incur potentially significant liabilities if they fail to do so. For those reasons, parties to an M&A transaction should appropriately address cyber risks throughout the transaction life cycle.
Understanding cyber risks
Cyber risks are risks of losses, costs and liabilities suffered or incurred by an organization as a result of a cybersecurity incident (i.e., an incident that adversely affects the confidentiality, integrity or availability of data in the organization’s custody or control, or the information technology systems used by or on behalf of the organization or its business partners and advisors)….
