Cyber Insurance Considerations in M&A Deals 
Written by Judy Selby, Managing Director at BDO Consulting, a Partner of M&A Leadership Council 

Merger and acquisition (M&A) activity continued to make headlines in 2016.  Corporate giants including AT&T, Bayer AG, CenturyLink and General Electric announced massive acquisitions, while the Verizon/Yahoo! deal highlighted the importance of cybersecurity due diligence in the M&A context. Simultaneously, uptake of insurance for cyber-related risks – so-called cyber insurance – continued to increase in 2016.  Appreciation of the role of cyber insurance in connection with M&A activity, therefore, is taking on increased importance.

While people may think of cyber insurance when confronted with a data breach, the role of cyber coverage may not be top of mind in the context of a merger or acquisition. It should be, though, because cyber policies typically contain provisions that directly affect coverage in light of such transactions. Enterprises should take a close look at their cyber policy provisions early on in the deal-making process so that coverage for the affected enterprises can be secured.

To read the full article, click here. 

BDO will be discussing this topic and more at our Art of M&A Due Diligence workshop next month in San Diego.  For information on this workshop and all of our upcoming events, visit the M&A Leadership Council Training Calendar.