November 16, 2017
Senior associate Molly Reynolds has spoken with Lexpert about how sellers can protect themselves and their information during a merger and acquisition.
The article discusses the increase in the number of privacy lawyers now being a part of the merger and acquisition process and how both parties are able to keep privacy front of mind throughout the process.
Molly told Lexpert in sharing information for the purposes of conducting a transaction, sellers can generally rely on the deal-friendly “business transaction exemption.”
The article goes on to say that Canada’s strict privacy laws “contains a provision that permits sellers to share private information without advanced consent if it’s for a proposed acquisition. It requires the seller to put some contractual safeguards in place during the evaluation process and, if the sale goes ahead, the buyer has to notify individuals after the fact that their information was transferred.”
Molly told Lexpert these safeguards require those potential buyers to sign agreements to the effect that they won’t use or disclose the information for any purpose other than evaluating the deal, that they’ll put the same protections in place that the seller is already using to minimize chances the personal information will leaked or hacked, and that they’ll destroy any of the personal information that was shared without retaining any copies if the deal doesn’t go through.
Molly, along with other authors Sophia Tolias, and Laurie Duke, authored a larger piece that discusses privacy in mergers and acquisitions. You can read that article, here.
To read more about Torys' privacy work, click here.