As mergers and acquisitions (M&A) are increasing all over the world cybersecurity is more crucial than ever before for businesses. If sensitive information is accidentally divulged during M&A due diligence or in post-M&A activities, the stakes are high.
The good news is the appropriate software can aid M&A CISOs in ensuring the integrity of data, maintaining compliance, and defending against the risks associated M&A activities. This includes the right data room solution that combines several digital tools into a single integrated platform, with simple uploads of files and single sign-on. It also offers comprehensive auditing and reports that helps compliance teams maintain control of their data and prevent accidental disclosure.
Virtual data rooms are a fantastic method of managing the M&A process from due diligence to post-M&A integration and operations. VDRs enable authorized users to read and share sensitive documents with no risk of leaks. They also let users create activity reports that show who has read or accessed specific pages of documents. These reports can deter malicious actors from leaking information since they can be traced back to individual users. They also permit M&A CISOs to assess the level of attention from potential investors or buyers.
Many M&A deals are founded on the value of intellectual property. Life science companies, for instance rely on virtual data rooms to handle everything from clinical trial results and HIPAA compliance to licensing IP and storage of patient files. When conducting M&A due diligence, it’s common for companies to have to provide and review large volumes of documents. This can be a labor-intensive and time-consuming task for both the company that is acquired and the acquirer. A VDR can be used to efficiently share all of this data through a secure platform.
Whatever the field, M&A can be a complex business procedure that can pose significant security risks. The M&A team must understand the potential threat posed by competitors, cybercriminals, and angry employees during the operations and integration phases of the M&A lifecycle. These risks could include malware, unauthorized network and system access or sabotage as well as other disruptions that could affect the value proposition of M&A.
With the right cybersecurity solutions in place M&A can be a profitable and enjoyable business experience. M&A can be a fantastic chance for businesses to increase value and expand their global reach. To ensure that this value isn’t diminished, a cybersecurity-focused M&A strategy must be in place before any transactions are initiated. Download our free guide Cybersecurity for M&A – From the M&A Playbook to learn more. Todd Thiemann is director of product marketing at ReliaQuest data rooms GreyMatter, a Security Operations Platform that makes cybersecurity possible through M&A, delivering visibility, cutting through the complexity of multiple security stacks and managing risk and uncertainty so your company can reach its goals.
Leave a Reply