As mergers and acquisitions (M&As) increase all over the world cybersecurity is more critical than ever before. The stakes are extremely high when confidential information is accidentally disclosed to bad faith actors during M&A due diligence, or accidentally exposed in post-M&A integration and operations.
The good news is the right software can assist M&A CISOs in ensuring integrity of data, ensuring compliance, and protecting against the risks that come with M&A activities. This is why they need the right data room software that integrates various digital tools into a single integrated platform with easy uploads of files and single sign-on. Additionally, it provides complete auditing and reporting that help compliance teams keep the control over their information and prevent accidental disclosure.
Virtual data rooms are an excellent way to manage the M&A process from due diligence to post-M&A integration and operations. VDRs permit authorized users to review comments, share, and even comment on sensitive documents without risk of leakage. They also allow users to create activity reports that reveal who has accessed and read specific document pages. These reports can deter people who leak information from being caught as they can be traced back to individuals. They can also help M&A CISOs assess the level of attention from potential investors or buyers.
Many M&A deals are based 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, to licensing IP to keeping patient records. It is not uncommon for companies to review and provide large volumes of documents during M&A due-diligence. This can be time-consuming and labor-intensive for both the company that is acquired and the buyer. A VDR can be utilized to efficiently share all this information on an secure platform.
Whatever the field, M&A can be a complex business process that could be a significant security risk. The M&A team must understand the potential threat posed by adversaries, cybercriminals and disgruntled employees during the operational and integration phases of the M&A lifecycle. These risks include malware, unauthorised access to systems and networks as well as sabotage and other disruptions that could affect the value proposition of M&A.
With the right M&A-focused cybersecurity solutions in place, M&A can be a lucrative and rewarding business experience. M&A provides businesses with an excellent opportunity to expand their global footprint and enhance their value. Before any transaction can commence the process, an M&A targeted cybersecurity plan should be put in place to ensure the value of this deal is not diminished. 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 GreyMatter, a Security Operations Platform that makes cybersecurity possible through M&A by delivering visibility, cutting through the complexity of heterogenous security stacks, and reducing risks and uncertainty to ensure that your company can achieve its objectives.