As mergers and acquisitions (M&A) are increasing all over the world cybersecurity is more important than ever for businesses. If confidential information is revealed during M&A due-diligence or in post-M&A transactions, the stakes are high.
The good news is that the appropriate software can aid M&A CISOs ensure the integrity of data, ensure compliance, and safeguard against the risks that come with M&A activities. This includes the right data room software that integrates different digital tools into a single integrated platform, with simple uploads of files and single sign-on, and offers extensive auditing and reporting options that helps compliance teams maintain control of their data and prevent accidental disclosure.
Virtual data rooms are a great method of managing the M&A process, from due diligence through post-M&A integration and operations. VDRs allow authorized users to read and share sensitive documents without risk of leaks. They also provide the ability to create activity reports that indicate who has read and accessed data rooms specific pages of documents. These reports can prevent malicious actors from leaking information as they can be traced to individuals. These reports also help M&A CISOs evaluate the level interest from potential buyers or investors.
Many M&A transactions are dependent on intellectual property. Life science companies, for instance depend on virtual data rooms to manage everything from clinical trial outcomes and HIPAA compliance to licensing IP and storages of patient files. It is not unusual for companies to review and provide large volumes of documents during M&A due-diligence. This can be very time-consuming and labor intensive for both the company being acquired and the buyer. A VDR allows you to share all this information securely and efficiently.
Regardless of the industry, M&A can be a complex business procedure that can be a significant security risk. In the integration and operation phases of the M&A cycle and beyond, the M&A team must understand the potential threats that cybercriminals and rivals pose. These risks could include malware, unauthorized access to systems and networks, sabotage and other disruptions that could affect the value proposition of M&A.
M&A can turn into profitable and rewarding business experience when you have the right cybersecurity solutions. M&A can be a fantastic opportunity for businesses to create value and expand their reach globally. Before any transaction can begin, a M&A focused cybersecurity strategy should be put in place to ensure the value of this deal is not diminished. To learn more about this, download our free guide Cybersecurity for M&A from the M&A Playbook. Todd Thiemann, director of marketing for products at ReliaQuest GreyMatter is a Security Operations Platform which allows cybersecurity to be achieved through M&A. It gives visibility, cuts through the multi-layered security stacks and helps manage risk and uncertainty to help your business achieve its goals.
