Personal Data Protection in M&A Operations

The structuring of mergers and business acquisitions has gained a new component in its already complex analysis. It is about verification and compliance with personal data processing procedures during the exercise of Due Diligence processes, as potential buyers and their respective advisors have access to target company information, which often include information from individuals protected by the General Data Protection Law. Constant negotiations and exchange of preliminary documents, necessary for such operations, should always take into account personal data protection to ensure compliance with the transaction with LGPD. Thus, cyber risk involving M&A processes is a new favor, of extreme relevance, since all parties involved end up taking the risks of cyber vulnerabilities associated with the target company and information exchange.

from big techs to smaller companies, most - if not integrality - from existing organizations have a digital load that can, during a negotiation involving constant digital communication, significantly increase the risks related to the cyber security of operation. To this end, management of cyber threats and proper treatment of personal data by all parties involved in M&A processes are crucial to evaluate and control risks and identify the vulnerabilities of the organization in order to prevent security incidents and exposure confidential data, thus preserving the proper administration of M&A processes.

Therefore, the implementation of security procedures appropriate to protect personal data treated by both negotiating companies, in order to avoid any type of access, use and/or improper dissemination, change, are of utmost. and/or loss of data, providing security to the processed data. This is an efficient way to identify potential threats, prioritize the necessary actions and correct misconceptions in the adopted practices, avoiding unwanted situations and ensuring the protection of the organizations involved.