How to prevail when technology fails - Flipbook - Page 30
30 | How to prevail when technology fails
4
Ensure that legal and
technical teams work
together during the
lifecycle of the deal
5
Assess cybersecurity
and data
privacy hygiene
If technology developed by a target company or
A serious data breach or cyber attack that stems
JV partner malfunctions and results in a serious
from a JV or outsourcing partner can lead to
data breach and loss of revenue, litigation could
complex litigation. So you should assess how
either be brought by the individuals affected or by
acquisition targets and JV and outsourcing
data protection regulators – or both. Technical and
partners protect their data and the strength of
legal teams must work together in the due diligence
their data governance and cybersecurity incidentphase to identify any issues with the technology
response plans. You should also find out whether
that may not be covered by generic reps
the potential partner has experienced
and warranties and design specific
a breach before – and how they
language. In parallel, they must
responded to it. If there has
consider the extent to which
been a breach in the past,
the business’s rights to
check for any outstanding
“It’s vital to understand
seek compensation from
regulatory or law
and define what constitutes
their JV partner or the
enforcement enquiries
directors of the acquired
or investigations.
technology failure. If you don’t,
company if there is
then M&A documentation will
a problem need to
be protected. These
just include general warranties,
teams must also work
which may not cover a specific
collaboratively when
failure event. Technical
an issue arises. By
doing so, you will be
and legal teams must work
best placed resolve the
together to craft this.”
issue in a way that does
not result in litigation.
Bill Regan | Partner, Hogan Lovells