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The Diligence Process for Privacy and Data Security: Telltale Indicators of a Data Program's Strengths and Weaknesses | Kramer Levin Naftalis & Frankel LLP


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The rapid expansion of data security and privacy laws and regulations both in the United States and internationally harbors the potential for substantial liability, with the consequence that cyber compliance has become an important focus of the mergers and acquisitions (M&A) diligence process. Until recently, unless a company was data heavy, its privacy program, documentation, and data security and acquisition programs were likely minor considerations for an acquirer. Today, companies cannot undertake an M&A process without thinking about data. Whether a target collects employee data, client data, consumer data or some combination of the three, an analysis of how that data is collected, processed and protected will be critical to the due diligence process. ....

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