The information gleaned from the [privacy due diligence] process may result in a change in plans as to the level of operational integration that the acquirer may hope to accomplish in the short term after the acquisition.
Privacy and data security issues come up in two ways in the due diligence process. First, there is the question of whether the due diligence process itself is secure and adequately protective of privacy rights. Once the process has been defined, more complex question of evaluating the privacy and data security issues of the target company.
While this paper generally describes the issues as they are presented to the investing or acquiring company, the mirror image of these issues exists for the target company. A company seeking to attract investors or buyers needs to anticipate the inquiry that will be forthcoming, and should consider addressing the issues well in advance of the due diligence process so as to present the picture of a company that has its house in order.
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