Due Diligence: Verifying Compliance with German Data Protection (DSGVO)
Due Diligence: Verifying Compliance with German Data Protection (DSGVO)
What specific steps must a buyer take to verify the seller's compliance with German Data Protection (DSGVO) laws during due diligence?
2 Answers
To verify a seller’s compliance with German Data Protection (DSGVO) laws, a buyer should review the company’s privacy policies, check records of consent and data processing activities, confirm data breach history, request evidence of employee training, and ensure contracts with third-party processors include required data protection clauses.
During due diligence, a buyer should review the seller’s data protection policies, records of processing activities, consent forms, and data breach history, and verify compliance with DSGVO/ GDPR obligations, including cross-border data transfers and employee/customer data handling. Consulting a data protection lawyer or officer is also recommended. Emotionally, doing this thoroughly feels like putting on a protective shield it ensures you’re not inheriting hidden legal or reputational risks while giving confidence that the business respects privacy and operates lawfully.