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Maximizing Data as an Asset in M&A Transactions

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Key Facts

  • 15+ years helping clients maximize the value of their data
  • Providing decision makers with actionable advice regarding data privacy and security risks
  • Helping both sellers and buyers reduce their liability and identify value

The Situation

Data functions as a key competitive differentiator, and now more than ever, as a strategic asset class in corporate transactions. With mergers and acquisitions, data can represent a significant portion of the value of a company and is what enables core aspects of the target’s business model. However, the same data can also create liabilities based on how it is collected, stored, and ultimately used and transferred.

The Approach

Mintz's team of Certified Privacy Professionals has been providing practical advice to companies to help them maximize the value of their data for more than 15 years. We understand the steps a company needs to take to unlock data’s value as an asset as well as reduce the liabilities that its collection, use, and transfer may create.

For example, we often analyze the flow of data through an existing business line to identify sources of value that were previously not recognized, uncover latent areas of liability, and expose additional opportunities to integrate data sets beyond the purpose originally conceived when the data was collected. We have done this with companies in a variety of industries, including education, financial, advertising, and retail.

We excel in working with companies that rely on data, and frequently advise both buyers and sellers of these companies. We have provided strategic advice that enables sellers to receive maximum value from acquirers, including during an auction process, by allowing sellers to appreciate and remediate areas of risk as appropriate. On the buy side, we understand what is important, and we are able to provide practical advice regarding remediation of identified risks.

The Outcome

Our team has helped our clients out in multiple situations where data privacy and security risks could have caused unforeseen delays in transaction closings, and unappreciated risks. We excel in providing decision makers with actionable advice regarding data privacy and security risk that allows for effective pricing of that risk. For example, we've identified cross-border data transfer risks that have allowed purchasers to realize significant reductions in purchase prices, as well as enabled sellers to effectively articulate why certain data flows in the educational context did not create significant liability for the purchasers. 

Supporting Professionals

We understand the steps a company needs to take to unlock data’s value and to reduce the liabilities that its collection, use, and transfer may create.