GDPR proving to be obstacle for M&A deals

Author: Olly Jackson | Published: 16 Nov 2018

The General Data Protection Regulation (GDPR) is forcing buyers and sellers to spend more to navigate an increasingly time consuming due diligence process, and is having a big impact on deal terms.  

"It’s becoming more common for non-disclosure agreements around due diligence to include data related clauses but bidders can be uncomfortable signing up to them," said Nigel Parker, partner at Allen & Overy. Instead, buyers are asking sellers to remove personal data from the process which can be a very time consuming and expensive process.

The regulation is also impacting deal terms, with buyers increasingly demanding indemnification or seeking additional warranties as a safeguard. 

The regulation, which came into force in May, is making due diligence a far bigger process than it had previously been, and in some instances is completely derailing M&A deals when the target company has...