As mergers and acquisitions (M&A) are increasing across the globe cybersecurity is more crucial than ever for businesses. If confidential information is revealed during M&A due diligence or in post-M&A operations, the stakes are high.
The good news is that the right software can aid M&A CISOs ensure the accuracy of their data, ensure compliance, and protect against the risk associated with M&A activities. This includes a data room software that integrates various digital tools into a single integrated platform with easy file uploads and single sign-on. It also offers extensive auditing and reporting options which helps compliance teams maintain control of their data and prevent accidental disclosure.
Virtual data rooms can be a wonderful way to manage the M&A process, from due diligence through post-M&A integration and operations. VDRs permit authorized users to quickly review comments, share, and even comment on sensitive documents, without risk of leakage. They also permit users to generate activity reports that detail who has read and accessed specific document pages. These reports will deter bad actors from leaking information as they can be traced to the individual users. These reports also help M&A CISOs assess the level interest from potential investors or buyers.
Many M&A deals are based on the value of intellectual property. Life science companies, for instance depend on virtual data rooms to manage everything from clinical trial results and HIPAA compliance to licensing IP and the storage of patient files. It is not uncommon for companies to review and supply large volumes of documents during M&A due-diligence. This can be a very labor-intensive and time-consuming process for both the company that is acquired and the acquirer. A VDR allows you to share this information safely and efficiently.
Whatever the field, M&A can be a complex business procedure that can pose significant security risks. During the integration and operations phases of the M&A cycle the M&A team must be aware of potential threats that cybercriminals and rivals pose. These risks could include malware, unauthorized network and system access as well as sabotage and other disruptions that can affect the value proposition of M&A.
With the right M&A-focused security measures in place M&A can be a lucrative and enjoyable business experience. M&A offers businesses a great opportunity to increase their global footprint and enhance their value. To ensure that this value is not compromised, a M&A-focused cybersecurity strategy must be in place before any transactions are initiated. Download our free guide 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 that makes cybersecurity possible via M&A. It delivers transparency, cuts through the multi-layered security stacks and manages risk and uncertainty to help your business reach its goals.
