Rob Townsend, co-chair of Morrison & Foerster's Global M&A Practice Group, and Chris Lyon, a partner in the firm’s Privacy + Data Security Group, were quoted regarding the ways cybersecurity is changing the M&A world in the article, “The Deal and The Data: 3 Ways Cybersecurity Is Changing M&As,” published by LegalTech News on October 31, 2016.
Ms. Lyon 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. Ms. 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.”
Mr. Townsend said that not only do M&A attorneys need to “understand the types of cybersecurity risks that can arise in the target company’s industry,” but they also need to bring in dedicated cybersecurity attorneys. Such attorneys, he explained, bring to the table the practical experience of helping companies “mitigate and respond to cybersecurity incidents” and can understand the scope and effects of a security incident, thereby offering an assessment of the risk involved.