Technology and data risks at portfolio companies directly impact the value of these companies as these risks are becoming a major focus of due diligence when the companies are sold, often leading to a reduction in purchase price, indemnifications, or, in some instances, killing the deal. Whether you're faced with a data breach that damages brand reputation or discloses highly valuable, confidential information or with privacy policies that do not allow for the sale of customer information, the importance of portfolio companies proactively managing these risks is paramount and can be done without significant investment.
Gary Barnabo, Anthony Diana, Catherine Castaldo and Sheek Shah discuss these issues at a high level, introducing the concept and offering some steps that private equity companies can take to manage the risks, with future podcasts providing more specific guidance.
This article is presented for informational purposes only and is not intended to constitute legal advice.
