As mergers and acquisitions (M&A) are increasing across the globe, cybersecurity becomes more critical than ever for business. If confidential information is revealed during M&A due diligence or in post-M&A activities, the stakes are high.
The good news is that the appropriate software can aid M&A CISOs ensure the integrity of data, ensure compliance, and guard against the risks that come with M&A activities. This includes the best data room solution that combines various digital tools into a single integrated platform, with simple uploads of data and single sign-on, and offers complete auditing and reporting that aids compliance teams in maintaining control and prevent accidental disclosure.
Virtual data rooms can be a great tool to manage the M&A processes, from due diligence to post-M&A processes and integration. VDRs allow authorized users to review and share comments on sensitive documents, without risk of leakage. They also allow users to generate activity reports that detail who has accessed and read specific document pages. These reports can deter people who leak information from being caught since they can be traced back to specific users. They also permit M&A CISOs to evaluate the level of interest from potential buyers or investors.
Many M&A deals are founded on the value of intellectual property. Virtual data rooms are utilized by life science companies to handle everything, from clinical trial results to HIPAA compliance, from licensing IP to keeping patient records. In the course of M&A due diligence, it is typical for companies to have to submit and review large amounts of documents. This can be very time consuming and labor intensive for both the company being acquired and the acquirer. A VDR can be used to share all this information over secured platforms.
M&A is a complex business process that can pose significant security risks, regardless of the industry. During the integration and operations phases of the M&A cycle the M&A team must understand the potential risks of cybercriminals as well as competitors. The risks could include malware, unauthorized network and system access as well as sabotage and other disruptions that could affect the value proposition of M&A.
With the right security measures in place M&A can be a profitable and rewarding business experience. M&A is a great opportunity for companies to add value and expand their reach globally. To ensure that this value is not compromised, a M&A-focused cybersecurity strategy must be in place prior to any transactions are initiated. Download our free guide on cybersecurity for M&A – Part of the M&A Playbook to learn more. 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 company achieve its goals.