As mergers and acquisitions (M&As) increase across the globe cybersecurity is more important than ever. The stakes are extremely high if confidential information is unwittingly disclosed to bad faith actors during M&A due diligence, or accidentally disclosed during post-M&A integration and operations.
The good news is that the appropriate software can aid M&A CISOs to ensure the integrity of data, maintaining compliance, and protecting against the risks that come with M&A activities. The best data room solution brings together digital tools into one integrated platform that allows easy file uploads, single sign-on and comprehensive auditing. This assists compliance teams to maintain control by stopping accidental disclosure.
Virtual data rooms are an ideal tool for managing the M&A processes from due diligence to post-M&A processes and integration. VDRs allow users with access to read or share and comment on sensitive documents without risk of leakage. They also allow users to create activity reports that show who has read and accessed specific pages of documents. These reports will deter those who leak data from being caught since they can be traced back to the individual user. These reports also let M&A CISOs evaluate the level interest from potential buyers or investors.
Many M&A deals are based on the value of intellectual property. Life science companies, for example utilize virtual data rooms to manage everything from clinical trial outcomes and HIPAA compliance to licensing IP and the storage of patient records. It is not unusual for companies to be asked to review and supply large volumes of documents in M&A due-diligence. This can be a labor-intensive and time-consuming task for both the business being purchased and the acquirer. A VDR can be used to transfer all this data on an secure platform.
Whatever the industry, M&A can be a complex business process that may create significant security risks. The M&A team must be aware of the potential risk from cybercriminals, competitors and disgruntled employees during the operational and integration phases of the M&A lifecycle. These risks may include malware, unauthorized access to networks and systems or systems, sabotage, and various forms of disruption that can affect the M&A value proposition.
With the right M&A-focused cybersecurity solutions in place M&A can be a profitable and enjoyable business experience. M&A can provide businesses with an opportunity to expand their footprint and add value. To ensure that this value is not compromised, a focused cybersecurity strategy should be in place before any transactions begin. Download our free guide on cybersecurity for M&A – From the M&A Playbook to learn more. Todd Thiemann is director of product marketing for ReliaQuest GreyMatter, a Security Operations Platform that allows cybersecurity to be achieved through M&A by providing transparency, reducing the complexity of multiple security stacks, and reducing risk and uncertainty so your company can achieve its objectives.