Stakeholders must carefully monitor privacy and cybersecurity regulatory developments not only for their existing businesses, but also for potential transactions with target companies. A target’s non-compliance with these responsibilities can undermine its financial valuation and its ability to complete a variety of strategic transactions. It also can impact the target company’s reputation and customers’ confidence in the business. In this two-part guest article series, Sidley Austin attorneys Sujit Raman, Sharon Flanagan, Michael R. Roberts and Francesca Blythe examine U.S., U.K. and E.U. regulatory trends in four key emerging technology sectors that recently have seen a rise in transactional activity. This second installment addresses key issues for stakeholders to consider when evaluating the privacy, data protection and cybersecurity risk profiles of target companies in biometrics, as well as financial technology and cryptocurrency transactions. Part one
outlined considerations for artificial intelligence and education technology transactions. See “Privacy and Cyber Due Diligence in M&A Transactions
” (Mar. 11, 2020).