Cybersecurity is of paramount importance in today's business deals. Mergers and acquisitions in Canada fell in the first quarter of this year and much of that is being pinned on increased measures to thwart cyber theft. Both buyers and sellers of businesses are including cybersecurity as being at the top of the list when it comes to business purchases and sales.
Cybersecurity issues concern the theft of personal data, which has reared its ugly head again as the data base of a prominent financial institution was hacked into recently. That compromised millions of Canadians' personal information. When businesses or business people are looking for businesses to buy, they want to make sure assets have been properly protected. Purchasers want to see that protections are in place for customers, suppliers and employees.
No one wants to purchase a business with the likelihood that personal information connected to that business might be stolen. The last thing anyone wants to think about is having to be a part of formal litigation because personal data was compromised, changed or stolen. Businesses are taking the time to ensure their cybersecurity measures are in place before yielding to mergers and/or acquisitions.
There are many issues that go hand in hand with mergers and acquisitions deals in Canada. Having a lawyer's advice on issues like cybersecurity before inking any deals may prevent possible problems in the future. The world of mergers and acquisitions can be complex and confusing and legal counsel is necessary before moving forward with them.