
By Adam Herbert, CEO and Co-Founder, Go Live Data
For years, due diligence has focused on the fundamentals such as financial performance, legal exposure and market position. While those remain essential, businesses have become more data-driven, and another question which is increasingly shaping acquisition decisions is how well does a company understand, govern and use its data?
In today’s M&A environment, data is a signal of operational maturity, cultural discipline and long-term resilience. Increasingly, it is also where ethical risk and opportunity converge. For acquirers and investors alike, better insights into a target’s data practices – from privacy governance to operational analytics – are shaping not only valuations, but future growth potential as well as integration success.
Why Data Due Diligence Matters
Due diligence, at its core, is about certainty and understanding what you are buying, what risks you are inheriting, and where genuine growth potential lies. Historically, this has focused on balance sheets, contracts and intellectual property, but in a digital economy where data drives strategy, the quality, governance and ethical handling of data have become critical assets and risks alike.
Poorly governed data is a compliance challenge, and it will pose a strategic blind spot if it’s overlooked. Hidden customer consent issues, unaddressed privacy vulnerabilities, or unclear data lineage can turn what was once a promising acquisition into a liability, once the deal is done. Regulators are tightening rules globally, and buyers who overlook data governance may inherit liabilities that devalue or constrain future monetisation.
Data as a strategic value driver
Data due diligence adds dimension to traditional deal evaluation in several ways:
1. Clarifying risk profiles:
Assessing how a target collects, stores and uses data highlights compliance strengths and weaknesses, from GDPR to evolving AI governance frameworks. These insights can influence price discovery and negotiation strategy early in the process.
2. Revealing operational realities:
Beyond compliance, good data practices reflect how well an organisation understands its operations and customers. Mature data governance often signals disciplined leadership, stronger internal controls and a clearer path to integration success.
3. Enhancing post-deal growth:
For many acquirers, the value proposition of a target lies in its ability to drive innovation. Data literacy; the ability to harness data for strategic insight, is a meaningful competitive lever. In acquisitions where customer engagement or AI-driven products are central to the business, this can distinguish the success stories from the less so.
Ethical Insights offering a competitive edge
As deal teams embrace data in due diligence, a parallel shift is underway, with ethical insights are becoming a key differentiator.
Modern acquirers increasingly recognise that trust, transparency and ethical stewardship are multipliers of corporate value. Customers, employees and regulators are watching. A company that treats data as a strategic asset and respects the people behind it, is more likely to preserve reputation, improve integration outcomes and unlock long-term growth opportunities.
Due diligence that examines data ethics including how consent is managed, whether algorithms perpetuate bias, how privacy commitments are upheld, does more than protect against penalty. It will signal respect for stakeholders and a commitment to sustainable value creation.
Integration starts in due diligence
Insights gleaned from thorough data due diligence inform not only risk mitigation, but integration roadmaps including how to harmonise systems, align governance, and marry data cultures across two organisations. Data due diligence, therefore, uncovers technical vulnerability and cultural readiness. A target with disjointed data practices presents integration challenges that can be as disruptive as operational misalignment or talent gaps, and it’s crucial to identify these issues early.


















