Privacy Due Diligence
PRIVACY AND DATA SECURITY IN M&A TRANSACTIONS
In an environment of constant technological development and massive use of personal data, privacy and information security within business and M&A transactions are an element that organizations can no longer ignore and therefore must be carefully evaluated in advance.
Companies that collect, use, and store the personal data of their customers, employees, and more generally of data subjects must put in place appropriate safeguards and protections.
In this context, in M&A transactions, the parties involved must consider the risks and responsibilities associated with the processing of personal data carried out in full compliance with European Regulation 679/2016 ("GDPR"); in fact, very often procedures are inadequate to GDPR and normal data security systems.
Such elements can occur either from a "hypertrophy of form" that can also lead to regulatory violations (i.e., disclosures and contracts), or from actual mishandling and storage of personal data: many organizations mistakenly view the processing of personal data as a mere bureaucratic fulfillment that sometimes they do not even give too much weight to.
Conversely, even companies that rely less on personal data for their day-to-day operations need to ensure that, both confidential corporate information and personal data for which they alternatively own and/or are responsible are properly handled and guarded, long before an M&A transaction.
PRIVACY DUE DILIGENCE
Privacy due diligence and data security assessment activities, therefore, become essential because if not properly controlled, they could generate criticality in the asset of a divested company or the entire company itself, effectively putting M&A transactions at risk.
In the acquisition phase, the buy-side must carefully assess these risks during the due diligence stages, as if not well detected and managed, they can have significant impacts and negatively affect the target company's valuation.
In addition, problems that are discovered during or after an M&A transaction has been completed would expose the company to challenging liabilities, including financial liabilities, with potential compensatory lawsuits.
The European legislature, considering the rights and freedoms of individuals to be a central issue, has been very careful to prevent the misuse of personal data, confirming a very heavy penalty system of up to 20 million euros or 4 percent of global annual global turnover.
In this context, companies must show caution in approaching M&A transactions and equip themselves with the right professionalism. Selecting experienced advisors who can ensure full adherence to the rules protecting the rights and freedoms of individuals and ensuring fluidity in M&A transactions such that they are completed successfully.
OUR STRENGTHS
Inveo's team's many years of experience in privacy and cybersecurity, as well as its ethereal composition in terms of the professional figures involved, make it a resource for guiding companies through the potential minefield of a high-stakes business transaction.
Our privacy and cybersecurity professionals have supported technology companies, financial institutions and P.A. companies by providing integrated consulting services in the area of preventing and managing cyber attacks on industrial systems.
In this regard, our holistic experience ensures, on behalf of our clients, adequate management of complex activities related to corporate transaction forms, including acquisitions by public companies, public listing, going-private transactions, private equity exit transactions, corporate spin-offs, and mergers between equals.
OUR SERVICES
The management of privacy risks in any M&A transaction, varies and has increasing levels of difficulty depending on the type of transaction, sector and protection achieved. We ensure integrated teams with legal and engineering expertise, capable of understanding and developing the client's overall needs.
Step 1 - Before Operation (Pre-signing)
Step 2 - During Post-Signing/Pre-Closing.
Step 3 - Following Operation/Post-Closing.
Other services