Mergers and acquisitions: Cybersecurity crucial during deals

With more and more insurance companies joining forces, actions are being ramped up to thwart cybertheft. News recently released shows that there have been more mergers and acquisitions in the insurance industry in Canada over the last year. In fact, a well-known mergers and acquisitions advisory firm says there were more than 625 brokerage and agency transactions made public in Canada and stateside last year -- significantly up from 2017.

Cybersecurity is of the utmost importance during deal making between insurance companies. A cybersecurity program will also help buyers know that security issues have been addressed and personal information won't be made public. Transactions could be affected if private information is leaked or stolen. This type of security is so paramount that many buyers are asking to interview members of a firm's cybersecurity team before proceeding with offers.

More companies are becoming aware of how important it is to have online security. It could be a deal breaker if cybersecurity is compromised. There have been many incidents where a lack of such security has fouled up mergers and/or acquisitions, so it is one of the areas both buyers and sellers are taking more seriously.

There are many areas the affect mergers and acquisitions deals in Canada. A lawyer understands the ramifications of such things as cybersecurity and how it might affect business ventures. He or she may be able to offer guidance to a client in such instances. It is best to have some knowledge about the laws that govern business, but also that govern online practices a well.  

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