As mergers and purchases (M&As) increase around the world cybersecurity is more critical than ever. If confidential information is disclosed during M&A due-diligence or post-M&A processes, the risks are high.
The good news is the appropriate software can aid M&A CISOs to ensure the integrity of data, ensuring compliance, and defending against the risks associated with M&A activities. This includes the best data room solution that combines diverse digital tools into one single integrated platform that allows for simple file uploads and single sign-on. It also offers extensive auditing and reporting options which helps compliance teams maintain the control over their information and prevent accidental disclosure.
Virtual data rooms can be an excellent tool for managing the M&A processes, from due diligence to post-M&A operations and integration. VDRs enable authorized users to read and comment on sensitive documents without the risk of leaks. They also permit users to create activity reports that show who has read or accessed specific pages of documents. These reports will deter people who leak information from being caught, since they can be traced back to specific users. These reports also help M&A CISOs to assess the level of interest from potential investors or buyers.
Many M&A deals are based on the value of intellectual property. Life science companies, for example utilize virtual data rooms to handle everything from the results of clinical trials and HIPAA compliance to licensing IP as well as storage of patient files. During M&A due diligence, it’s common for companies to have to furnish and review volumes of documents. This can be a lengthy and labor-intensive process for both the company being acquired and the acquirer. A VDR can be used to efficiently transfer all this data through an secure platform.
Whatever the field, M&A can be a complex business process that may present significant security risks. The M&A team must be aware of the risk posed by cybercriminals, competitors and disgruntled employees during the integration and operation phases of the M&A lifecycle. The risks could include malware, unauthorised access to the system or network, sabotage, and other disruptions that could undermine M&A’s value proposition.
With the right M&A-focused cybersecurity solutions in place M&A can be a lucrative and enjoyable business experience. M&A can be a fantastic opportunity for businesses to add value and expand their global reach. To ensure that this value isn’t compromised, a M&A-focused cybersecurity strategy must be in place before any transactions begin. Download our free guide Cybersecurity for M&A – From the M&A Playbook to learn more. Todd Thiemann, director of product marketing at ReliaQuest GreyMatter is a Security Operations Platform which allows cybersecurity to be achieved through M&A. It provides visibility, cuts through multi-layered security stacks and manages risk and uncertainty to help your business achieve its goals.