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You are viewing ARCHIVED CONTENT released online between 1 April 2010 and 24 August 2018 or content that has been selectively archived and is no longer active. Content in this archive is NOT UPDATED, and links may not function.Extract from article by Ricci Dipshan
Cybersecurity has come a long way in recent years, going from a back-burner issue to a front-and-center risk. And the M&A space is no exception. Morrison & Foerster’s “M&A Leaders Survey” of 150 C-suite executives, investors, general counsel and other professionals found that 82 percent of respondents now place a greater emphasis on assessing the cybersecurity practices of target companies.
Christine Lyon, a partner at MoFo who focuses on data handling and protection issues, noted that “buyers are increasingly sophisticated about cybersecurity risks, and this is shaping their approach to M&A deals.”
As a result, cybersecurity has become a standard area of due diligence in M&A deals, regardless of the nature of the target company’s business, she added.
Lyon predicts the emphasis on cybersecurity will only increase in the near future, as more buyers seek out “sophisticated representatives and warranties in the areas of privacy, cybersecurity, and security incidents.”
Beyond M&A, cybersecurity is also expected to be a factor in the valuations of IPOs, the volume of which 54 percent of those surveyed believe will increase in 2017.
Read the complete article at The Deal and The Data: 3 Ways Cybersecurity Is Changing M&As
