As mergers and acquisitions (M&A) accelerate all over the world, cybersecurity becomes more critical than ever for businesses. The stakes are high, if confidential information is unwittingly divulged to bad actors during M&A due diligence, or accidentally exposed during post-M&A integration or operations.
The good news is the right software can help M&A CISOs in ensuring the integrity of data, maintaining compliance, and defending against the risks that come with M&A activities. This includes the right data room solution that consolidates different digital tools into a single integrated platform that allows for simple file uploads and single sign-on. It also provides comprehensive auditing and reports which helps compliance teams maintain 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 activities and integration. VDRs allow authorized users to review and share comments on sensitive documents, without risk of leakage. They also have the capability to create activity reports that indicate who has read and accessed specific document pages. These reports can stop people who leak information from being caught since they can be traced back to specific users. They can also help M&A CISOs evaluate the level of interest from potential buyers or investors.
Many M&A deals are based on the value of intellectual property. Virtual data rooms are utilized by life science companies to manage everything, from clinical trials to HIPAA compliance, to licensing IP and storage of patient data. It is not uncommon for companies to be asked to review and supply large volumes of documents in M&A due-diligence. This can be a very time-consuming and labor-intensive process for both the company being acquired and the buyer. A VDR can be used to efficiently transfer all this data over a secure platform.
No matter what industry, M&A can be a complex business procedure that can present significant security risks. In the integration and operation phases of the M&A cycle and beyond, the M&A team must understand the dangers posed by cybercriminals and competitors. These risks could include malware, unauthorized access to the system or network, sabotage, and other disruptions that could affect the value proposition of M&A.
M&A can be a rewarding and profitable business experience when you have the right cybersecurity solutions. M&A can provide businesses with an opportunity to expand their footprint and increase their value. To ensure that this value is not compromised, a M&A-focused cybersecurity strategy should be in place prior to any transactions are initiated. 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 virtual data room due diligence Operations Platform that helps to make cybersecurity possible through M&A. It provides visibility, cuts through complexity of the various security stacks, and manages risk and uncertainty to help your company achieve its goals.
by Iloko