As mergers and acquisitions (M&A) accelerate all over the world cybersecurity is more crucial than ever for business. The stakes are high in the event that confidential information is not knowingly divulged to bad actors during M&A due diligence, or accidentally exposed during post-M&A integration and operations.
The good news is the right software can assist M&A CISOs to ensure the integrity of data, maintaining compliance, and safeguarding against the risks that come with M&A activities. This includes the right data room solution that combines several digital tools into a single integrated platform that allows for simple uploads of data and single sign-on. Additionally, it provides comprehensive auditing and reporting that aids compliance teams in maintaining control and avoid accidental disclosure.
Virtual data rooms are an effective tool to manage the M&A processes from due diligence to post-M&A activities and integration. VDRs make it easy for authorized users to review and share sensitive documents without the risk of leaks. They also provide the ability to generate activity reports that detail who has read and accessed specific document pages. These reports can stop criminals from leaking information because they can be traced back to the individual users. They also permit M&A CISOs to evaluate the level of interest from potential buyers or investors.
Many M&A deals are built around the value of intellectual property. Life science companies, for example, use virtual data rooms to manage everything from clinical trial results and HIPAA compliance to licensing IP as well as storage of patient records. When it comes to M&A due diligence, it is normal for companies to have to supply and review a large amount of documents. This can be very time consuming and labor intensive for both the business that is acquired and the acquirer. A VDR allows you to share this information securely and efficiently.
M&A is a complicated business process that could pose significant security risks, regardless of the industry. The M&A team needs to be aware of the potential threat posed by competitors, cybercriminals and disgruntled employees during the integration and operation phases of the M&A lifecycle. These risks could include malware, unauthorized access to networks and systems, sabotage, and other forms of disruption that can harm the M&A value proposition.
M&A can be an enjoyable and profitable business venture if you use the best cybersecurity solutions. M&A offers businesses a great opportunity to expand their footprint and add value. Before any transaction can take place, a M&A focused cybersecurity strategy must be in place to ensure that the value of the deal is not compromised. For more information, download our free guide, Cybersecurity for M&A from the M&A Playbook. Todd Thiemann is director of product marketing for ReliaQuest GreyMatter, a Security Operations Platform that allows cybersecurity to be achieved through M&A by delivering transparency, removing the complexity of multiple security stacks and managing the risk and uncertainty so that your company can achieve its objectives.