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?
3 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.
During due diligence, the buyer should review the seller’s GDPR documentation, including privacy policies, consent records, and data processing agreements. It is important to verify the existence of a records of processing activities (RoPA) and any past data breaches or regulator correspondence. Confirming lawful data transfer and retention practices helps avoid post-acquisition liability.