Is there a way to prevent technology leakage?

I see that you have asked about a security-maintenance method that can prevent technology leakage.

During the M&A process, information for which security is important, such as the company's core technology and trade secrets, is exchanged, so concerns about leakage are inevitably significant.

During the M&A process, a representative method for preventing technology leakage is, first, to conclude a non-disclosure agreement (NDA).

An NDA specifies the scope of what level of information the seller and the buyer will exchange at which stage, and it is an agreement concluded regarding the confidentiality of the information.

You can prepare against technology leakage through specific clauses, such as the scope of information provision, the obligation to destroy information, and liability for damages in the event of a leak.

Such confidentiality provisions are commonly included not only in the NDA (non-disclosure agreement) but also in the LOI (letter of intent), the MOU (memorandum of understanding), and the SPA (share purchase agreement).

In addition, using a data room can further strengthen information security.

It has the advantage that you can restrict access rights or control access to files through encryption.

By using these measures, you can minimize the risk of technology leakage while proceeding with the M&A.

To prevent legal risks, I recommend that you prepare after receiving legal advice from an M&A attorney.