As mergers and acquisitions (M&A) accelerate around the world, cybersecurity becomes more critical than ever before for businesses. The stakes are extremely high should confidential information be accidentally divulged to bad actors during M&A due diligence, or accidentally exposed during post-M&A integration and operations.
The good news is that the right software can aid M&A CISOs maintain the integrity of information, maintain compliance, and guard against the risk associated with M&A activities. This includes the best data room software that combines various digital tools into a single integrated platform with easy uploads of files and a single sign-on. It also provides comprehensive auditing and reports that aids compliance teams in maintaining control and prevent accidental disclosure.
Virtual data rooms can be a wonderful method of managing the M&A process, from due diligence through post-M&A integration and operations. VDRs enable authorized users to review and share sensitive documents without the risk of leaks. They also have the capability to create activity reports that reveal who has accessed and read specific document pages. These reports can discourage bad actors from leaking data since they can be traced back to specific users. These reports also let M&A CISOs evaluate the level interest from potential investors or buyers.
Many M&A deals are built around the value of intellectual property. Life science companies, for example depend on virtual data rooms to handle everything from clinical trials‘ results and HIPAA compliance to licensing IP and storage of patient files. It is not unusual for companies to be required to review and provide large volumes of documents during M&A due-diligence. This can be a labor-intensive and time-consuming process for both the company that is purchased and the buyer. A VDR can be used to efficiently transfer all this data via secured platforms.
Whatever the field, M&A can be a complex business procedure that can be a significant security risk. In the integration and operation phases of the M&A cycle The M&A team must be aware of potential threats from cybercriminals and their competitors. These risks may include malware, unauthorized access to systems and networks, sabotage, and other forms of disruption that can compromise the M&A value proposition.
With the right cybersecurity solutions in place, M&A can be a lucrative and rewarding business experience. M&A can provide businesses with an opportunity to increase their global footprint and create value. To ensure that this value isn’t compromised, a M&A-focused cybersecurity strategy should be in place prior to when transactions begin. For more information about this, download our free guide Cybersecurity for M&A: From the M&A Playbook. Todd Thiemann, director of marketing for products at ReliaQuest GreyMatter is a Security Operations Platform which makes cybersecurity possible via M&A. It provides transparency, cuts through the complexity heterogeneous security stacks, and manages risk and uncertainty to help your business achieve its goals.