Not so long ago, secure data transfer was a manageably complex matter: relevant documents were sent to the other party by courier or post and then returned. Those who wanted to be on the safe side used registered mail. Safe? In principle, yes. But at the same time slow, expensive and hardly practical for large transactions.
Today, data transfer by e-mail is an obvious choice. Quickly put the due diligence report or draft contract in the attachment and off you go by email - but is it secure? Data protection has been a hot topic ever since the GDPR. And in the highly sensitive environment of M&A deals, secure data transfer is not an optional extra, but a must.
The dilemma: How can transaction documents, financial data or confidential company information be exchanged efficiently and securely at the same time? We show you what you need to consider - and which tools are really suitable.
Digital instead of paper form: risks & side effects in everyday M&A work
In most cases, there is no malicious intent behind this: The buyer makes an inquiry about the vendor due diligence report, the seller replies by email, the consultants forward further attachments - and a whole chain of emails with highly sensitive data develops.
The problem: GDPR violations or even breaches of non-disclosure agreements can occur even without malicious intent. Does this sound familiar to you? You are not alone. As practical as digital tools are in the M&A context, they harbor typical risks that can quickly become expensive.
Don't take any risks! Data transfer - better safe than sorry!
As a consultant, lawyer or financial expert in the M&A process, you need to send data absolutely securely - insecure solutions are not an option. A careless click can lead to security breaches that not only result in penalties, but also liability risks and the loss of client trust.
If confidential transaction data falls into the wrong hands, this can jeopardize the deal or even have legal consequences for you. You should therefore rely on secure solutions from the outset - instead of having to deal with claims for damages or irreparable loss of reputation later on.
These dangers lurk if data security is breached
In serious cases, criminal charges, fines of up to 20 million euros or claims for damages may be brought. Even more serious: losing the trust of investors and clients can permanently destroy deals. Reason enough to see secure data transfer as an integral part of every M&A process.
Online data transfer: What options are there for M&A transactions?
Despite all the risks, a deal is not feasible today without digital data transfer. The important thing is to choose the right solution:
Email attachments: High risk. No control over recipients and access.
Encrypted emails: Better, but often impractical for large volumes of data (e.g. financial reports, due diligence documents).
Physical data carriers: USB sticks or DVDs are easily lost - not a real option.
Cloud services: Functional, but often located outside the EU - therefore potentially not GDPR-compliant.
Transfer services: Available for a limited time, but often based in countries without optimal data protection.
Collaboration suites: Ideal for M&A. Platforms with EU hosting and clear GDPR compliance (e.g. DEALPOINT) offer secure, traceable data exchange and transparency.
Secure data transfer free of charge - an option for M&A?
There are free tools that enable simple transfers. But do you really want to risk data storage or encryption not meeting the highest standards in a deal worth millions or even billions?
The following applies to M&A transactions in particular: security is not a "nice-to-have". Investing in tested and professional solutions always makes more sense than taking the risk of data leaks and deal break-offs.
This is how it works: Send sensitive data securely with the DEALPOINT Collaboration Suite
For M&A transactions, the DEALPOINT collaboration suite is a tailor-made solution. The platform, developed in Austria, enables buyers, sellers and their advisors to exchange all relevant data centrally, efficiently and highly securely.
Instead of sending contracts, financial data or confidential reports by email, they are uploaded to digital data safes. This means that even large amounts of data can be shared securely. In addition, digital signatures can be integrated - a plus in the transaction process.
All data is stored exclusively in the EU, permissions can be controlled granularly and the platform is fully GDPR-compliant.
Online data transfer with DEALPOINT: "Safety first" right from the start
DEALPOINT relies on state-of-the-art security standards such as FIDO2 authentication (passwordless multi-factor authentication) and client-side encryption. This means that data is already encrypted on your device and never leaves your office unsecured.
In addition, the data centers are ISO-certified (27001, 27017, 27018) - a guarantee for cyber security, cloud compliance and personal data protection.
Secure data transfer is a decisive success factor in M&A
Whether exchanging due diligence reports, draft contracts or financial figures: Insecure data transfers can massively jeopardize transactions. A professional collaboration solution such as DEALPOINT ensures that workflows are efficient, compliant and absolutely confidential.
In addition to secure data transfer, DEALPOINT also provides support with legal project management in M&A processes and offers other useful features.
Are you curious? Then we look forward to hearing from you - and will be happy to show you how DEALPOINT can make your transactions more secure and efficient.
