Privacy, data security on M&A radar screens.

• Position: PRIVACY - Mergers and acquisitions - Brief article

Dykema's 10th annual M&A survey revealed that privacy and data security are showing up on the radar screen for a third of mergers and acquisitions (M&A) professionals.

It shouldn't be surprising given the increased attention from regulators and customers affected by data breaches in recent years. Inside Counsel's Ed Silverstein predicts there will be an even higher volume of M&A transactions this year than there were in 2014.

In a recent issue of Inside Counsel, Stephen Tupper, leader of Dykema's privacy, data security, and e-commerce practice, highlighted some issues that could become major problems if not addressed early and well. If the deal includes the transfer of personally identifiable information (PII), it matters what the parties have promised customers. If the acquisition target has promised its customers it will not transfer their PII to a third party, the Federal Trade Commission would likely hold up the deal.

Transferring PII across national borders becomes even more problematic. Foreign regulators, particularly those in the...