Tag archives: cyber-security

The Dynamic Duo: Cyber-security and Due Diligence during the COVID-19 Pandemic

The widespread impact of the COVID-19 pandemic (“pandemic”) continues to highlight the several ways in which M&A transactions have had to adapt to changing times, particularly by ramping up cyber-security measures in a digital world. Prior to the pandemic, there already existed a shift towards cyber-security due diligence since many businesses relied on digital assets. As a result, increased protection was paramount since a deficiency in the cyber-security measures of a target could lead to potential liability on the part of the buyer, after the transaction had closed.

Another Shift Caused By The Pandemic

The pandemic forced many … Continue Reading

Record year predicted for the cybersecurity industry

With a growing reliance on technology, it does not come as much of a surprise that the importance of cybersecurity is increasing as well. In its Mid-year Market Review, Momentum Cyber reported that $2.3 billion had already been lost as a result of cryptocurrency breaches. This staggering loss may be one of the many reasons why there is a greater focus on cybersecurity and why the number of mergers and acquisitions (“M&A”) in the cybersecurity sector has been rising. It was even predicted in August 2018 that this would be a record year for the industry.

This prediction … Continue Reading

Virtual data rooms: don’t let the cloud cloud your judgment

Platforms that were once physical in nature – such as data rooms – are increasingly becoming digitized. The cloud has opened up new frontiers for data storage: It offers large amounts of storage, collaborative file sharing, and easy access to records at a low cost. On top of all that, the documents are not susceptible to damage as a result of natural disasters, including floods and fire. Consequently, it comes as no surprise that cloud storage may appear a tempting option for a virtual data room.

However, when considering cloud storage, recent high profile cyber-attacks ought to raise a red … Continue Reading

Deal maker or deal breaker? Information security during M&A

The Ontario Securities Commission (OSC) recently published its Statement of Priorities for the Financial Year to End March 31, 2017 (the Statement). The Statement unveils a new area which the OSC intends to focus its key resources and actions on – cyber resilience. For many, this does not come as a surprise, particularly given the high-profile cyber-attacks on organizations ranging from Ashley Madison to J.P. Morgan. It is now well-recognized that in a market where businesses are exponentially increasing their dependency upon technology, the need to understand and mitigate cyber-security risks is proliferated.

The Statement should serve … Continue Reading

M&A as a strategic priority in media and entertainment

EY has released the 14th edition of the Media and Entertainment (M&E) Global Capital Confidence Barometer (the Report) which concludes that M&A activity will become an important piece to value creation strategies given the current subdued economic environment. The survey canvassed a panel of more than 1,700 executives in 45 countries of which 75 respondents represented the M&E industry.

Zero percent of the respondents expect strong growth in the economy, down 23% from six months ago. In this context, M&E companies are expected to proactively explore growth options by pursuing bolder and more novel strategies such … Continue Reading

Regulators get serious about cyber-security

In a previous post, we discussed how to manage cyber security risks during the negotiation and due diligence stages of an M&A transaction. In this post, we discuss the ways regulatory bodies have begun managing these risks and the significance of these efforts to M&A participants engaging in substantial data asset transfers.

On February 18, 2016, the Investment Industry Regulatory Organization of Canada (IIROC) released its Compliance Priorities Report. Following this, in March 2016, the Ontario Securities Commission (OSC) released its Draft Statement of Priorities for 2016/2017. These reports, which constitute summaries of issues and action … Continue Reading

Cyber security: what the hack?

In a previous blog post, we discussed how to manage cyber security risks during the negotiation and due diligence stages of an M&A transaction. In this post we discuss cyber security insurance as a tool for managing this unwelcome risk.

The cyber security risk

Although businesses have been ramping up their information security systems, the pace of cyber security breaches is not slowing down. One study estimates that cybercrime will cost businesses $2.1 trillion globally by 2019. And, as recent security breaches have taught us, a security breach can have reputational, moral, and deeply political complications. The 2014 hack … Continue Reading

What the Ashley Madison hack tells us about M&A security risk

The online service Ashley Madison is reeling from a catastrophic data breach that resulted in the public exposure of its customers’ sensitive private information.  Ironically, the Ashley Madison hack was a very conspicuous and public affair. However, not all cyber security breaches are publicly broadcasted. Most hacks are done surreptitiously such that the hacked company would not know (at least not right away) that it has been attacked. Such “private” hacks can go undetected for months or even years after the initial cyber security breach, and the consequences and damages resulting from the breach are therefore very difficult to predict, … Continue Reading

Technology M&A in 2014: 10 issues to consider (Part II)

Earlier this month, we posted the first instalment in our two-part series summarizing Deloitte’s Technology M&A Report which outlines the top ten considerations for tech and other companies to keep in mind when using M&A to fuel development and growth. Our earlier post considered the top 5 issues identified by Deloitte, and this post will consider the remaining issues in order to round-out the top ten:

  1. M&A to drive business transformation;
  2. divestitures;
  3. talent management;
  4. cyber-security; and
  5. rules and regulations.

M&A to drive business transformation

Driving business transformation through M&A is pervasive in the tech market. Hardware companies are expanding into … Continue Reading

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