What is the role of data protection in mergers and acquisitions?

Data protection concerns can significantly impact the outcomes of mergers and acquisitions, especially in tech-driven industries. These concerns can affect various aspects of a deal, such as valuation, due diligence, integration, and regulatory approval. Failure to address data protection issues adequately can lead to legal liabilities, regulatory fines, reputational damage, and operational disruptions. In tech-driven industries where data is a critical asset, ensuring compliance with data protection regulations and safeguarding sensitive information become crucial factors in determining the success of a merger or acquisition. Companies need to assess data privacy risks, implement robust security measures, conduct thorough compliance audits, and establish clear data governance frameworks to mitigate potential challenges and enhance the chances of a successful deal.