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February 20, 2019

Buyer beware: Cybersecurity due diligence for transactions

In the context of a transaction, it is common to focus due diligence on areas such as tax, employment and real estate. Devices enabling connectivity and the adoption of digital technologies (robotic process automation, artificial intelligence, etc.) have increased companies’ vulnerability to a security breach. The connected ecosystem, together with growing regulatory scrutiny of data security, have increased the importance of a cybersecurity due diligence. According to the EY Global Information Security Survey 2018–19, 77% of organizations are operating with only limited cybersecurity. Exclusion of cybersecurity due diligence could result in a significant loss of value; worse, it could make it easier for cyber criminals to compromise the security systems of the purchaser. An EY Law Alert provides details.

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