M&A Post Completion - Data Protection Integration and Gap Closing
Privacy and data security play a crucial role in mergers and acquisitions, significantly impacting the outcome of transactions. These risks are heightened for organisations wishing to invest in, develop and make use of products, services, tools and platforms which are capable of generating and processing large quantities of data such as those involved in IoT, autonomous vehicles and industrial machinery, fintech products and services, data analytics, wearables and digital health devices and AI and machine learning tools.
The need for Data Protection Integration and Gap Closing
Many M&A due diligence reports will identify red or amber data protection risks for the purchaser. Some risks can be eliminated or mitigated prior to closing or by way of warranty or indemnity protection. However, certain risks cannot or do not need to be remedied prior to completion either because of the tight acquisition deadlines or because they are considered a lower risk priority. In these cases, the report often recommends that such gaps are reviewed, mitigated or remedied post completion. Our team can help you to plan, assess and deliver this data protection compliance.
The need for Data Protection Integration and Gap Closing
Many M&A due diligence reports will identify red or amber data protection risks for the purchaser. Some risks can be eliminated or mitigated prior to closing or by way of warranty or indemnity protection. However, certain risks cannot or do not need to be remedied prior to completion either because of the tight acquisition deadlines or because they are considered a lower risk priority. In these cases, the report often recommends that such gaps are reviewed, mitigated or remedied post completion. Our team can help you to plan, assess and deliver this data protection compliance.
How we can help:
Advising on whether any ancillary agreements are required (e.g. transitional services agreement dealing with post closing data integration and services (eg relating to ongoing and limited access to IT or HR systems), data sharing agreements, data transfer agreements for transfers outside of the UK and EEA);
Advising on transfer of databases (in an asset sale) to ensure that this is done securely and in accordance with applicable data protection laws;
Notifying/updating regulators (e.g. updating DPO details, paying data protection fee);
Drafting notices to employees and/or customers regarding transfers of their data; and
Carrying out detailed post completion DP gap assessments or considering new data protection work streams to fix gaps in compliance in the new business.
For more information, please get in touch with one of our data protection experts.
