When splitting or divesting from a company, what is essential to maintain concerning data?

Maintaining due diligence and care during the process of splitting or divesting from a company is crucial for a number of reasons. First and foremost, data contains sensitive and proprietary information that must be handled with the utmost care to protect both the integrity of the data and the interests of stakeholders involved. When an organization splits or sells a portion of its business, it is imperative to ensure that data is appropriately categorized, separated, and managed according to legal, regulatory, and operational requirements.

Exercising due diligence involves assessing the types of data that are relevant to the entity being divested, ensuring compliance with data protection laws, and implementing necessary measures to safeguard against unauthorized access or breaches during the transition process. This includes ensuring that any customer data is handled according to applicable privacy regulations, and that intellectual property is not inadvertently disclosed.

Additionally, implementing proper data governance during this time helps maintain trust with customers, partners, and regulators, as well as mitigating potential legal risks that could arise from mishandling sensitive data. Therefore, due diligence and care are not only essential but also a foundational practice in effectively managing data during corporate changes such as divestitures or splits.