In this episode of CHATTINN CYBER, Marc Schein interviews Steven Kuperschmid, Co-Chair of Cybersecurity and Data Privacy at Ruskin Moscou Faltischek PC. Steven is experienced as a corporate M&A and securities lawyer. During the conversation, Steven shares his knowledge about cybersecurity in M&A deals, how (or whether) it impacts contracts and the different phases to setting an effective buyer-seller deal. He also talks about the growing need for cyber insurance in different industries today.
At what point does cybersecurity integration happen within an M&A deal? Steven explains that it depends on the nature of the target’s business. For the middle and upper-middle markets, like manufacturing and distribution, industrial technology, financial services, and healthcare, cybersecurity needs to be a priority. You must know whether the target business has Personally Identifiable Information (PII) – if so, cybersecurity needs to be prioritized irrespective of the industry.
However, cybersecurity doesn’t change different deal structures. Because a deal is chosen for tax reasons to mitigate the buyer’s risk, cybersecurity is a far bigger problem than the signed contract.
As for the signing of a deal, there are different phases:
Further in the conversation, Steven covers cyber insurance, explaining its relevance and importance in the cyber security industry. Having a good cyber insurance grasp can ensure the buyer can benefit from them during a data breach.