CYBER DUE DILIGENCE IN MERGERS & ACQUISITIONS: THE OVERLOOKED RISK
CYBER DUE DILIGENCE IN MERGERS & ACQUISITIONS: THE OVERLOOKED RISK Apoorva, LLM Student at Geeta Institute of Law (India) Download Manuscript doi.org/10.70183/lijdlr.2025.v03.128 The research paper titled “Cyber Due Diligence in Mergers & Acquisitions: The Overlooked Risk” critically examines the growing significance of cybersecurity and data protection in corporate transactions. It highlights that in the digital era, data assets have become vital determinants of corporate value, yet cyber due diligence remains an underexplored area in mergers and acquisitions. The study analyzes how the absence of structured cybersecurity assessments exposes acquirers to legal, financial, and reputational liabilities. It explores India’s existing legal framework under the Information Technology Act, 2000 and the Digital Personal Data Protection Act, 2023, revealing substantial regulatory gaps compared to international models like the EU’s GDPR and the U.S. SEC’s disclosure-based approach. The paper argues that integrating cyber due diligence into the M&A process is crucial for risk mitigation, corporate governance, and investor confidence. It further recommends legal reforms, contractual safeguards, and regulatory enforcement mechanisms to make cybersecurity assessment a statutory obligation. By drawing on global jurisprudence and Indian corporate practices, the research provides a comprehensive blueprint for embedding cyber risk governance within India’s M&A landscape, ensuring compliance, value preservation, and sustainable digital business integration.
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