As mergers and purchases (M&As) increase around the world, cybersecurity is more important than ever. The stakes are very high when confidential information is accidentally divulged to bad actors during M&A due diligence, or accidentally revealed during post-M&A integration and operations.
The good news is that the right software can help M&A CISOs to ensure the integrity of information, maintain compliance, and safeguard against the risk associated with M&A activities. This includes the right data room software that integrates various digital tools into a single integrated platform, with simple file uploads and single sign-on. It also provides complete auditing and reporting which helps compliance teams maintain the control over their information and prevent accidental disclosure.
Virtual data rooms are a great tool to manage the M&A processes, from due diligence to post-M&A activities and integration. VDRs permit authorized users to easily review comments, share, and even comment on sensitive documents with no risk of leakage. They also permit users to create activity reports that reveal who has accessed or read specific pages of documents. These reports can deter criminals from leaking information because they can trace them back to the individual user. These reports also help M&A CISOs evaluate the level interest from potential investors or buyers.
Many M&A transactions are built around intellectual property. Virtual data rooms are employed by life science companies to manage everything, from clinical trials to HIPAA compliance, to licensing IP and the storage of patient files. It is not unusual for companies to be required to review and provide huge volumes of documentation during M&A due-diligence. This can be a very labor-intensive and time-consuming process for both the company being acquired and the buyer. A VDR lets you share all this information securely and efficiently.
M&A is a complex business process that poses significant security risks, no matter the industry. In the integration and operation phases of the M&A cycle, the M&A team must be aware of the potential risks of cybercriminals as well as competitors. These risks could include malware, unauthorised access to networks and systems and sabotage as well as other types of disruption that could compromise the M&A value offer.
M&A can be profitable and rewarding business experience if you choose the best cybersecurity solutions. M&A gives businesses an opportunity to increase their global footprint and create value. Before any transaction can commence it is essential that an M&A focused cybersecurity strategy must be in place to ensure that the value of this deal is not compromised. Download our free guide on cybersecurity for M&A – From 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 gives visibility, cuts through complexity of the various security stacks, and manages risk and uncertainty to help your company reach its goals.