Privacy compliance matters to a company’s valuation

The reality now is that complying with privacy laws such as the GDPR plays an increasingly significant role in a company’s valuation. In its simplest form, the valuation of the company is obtained by the sum of all revenue-generating activities less the sum of all revenue-reducing activities. In all cases, when a financial penalty such as a fine is directly imposed on the company, this directly impacts the balance sheet of the company and reduces its valuation.

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