As mergers and acquisitions (M&A) accelerate across the globe cybersecurity is more important than ever before for businesses. If sensitive information is accidentally divulged during M&A due-diligence or post-M&A processes, the risks are high.
The good news is that the appropriate software can aid M&A CISOs to ensure the integrity of their data, maintaining the compliance of the law, and reducing the risks associated M&A activities. This is why they need the right data room solution that consolidates different digital tools into a single platform that is easy to use with uploads of files and single sign-on. It also provides comprehensive auditing and reports which helps compliance teams maintain control and avoid accidental disclosure.
Virtual data rooms are an excellent tool for managing the M&A processes from due diligence to post-M&A activities and integration. VDRs enable authorized users to review and share sensitive documents without risk of leaks. They also provide the ability to create activity reports that indicate who has read and accessed specific document pages. These reports can deter malicious actors from leaking information because they can be traced to individual users. These reports can also help M&A CISOs evaluate the level interest from potential buyers or investors.
Many M&A transactions are based on intellectual property. Life science companies, for example, depend on virtual data rooms to manage everything from the results of clinical trials and HIPAA compliance to licensing IP and the storage of patient records. When conducting M&A due diligence, it is typical for companies to to supply and review a large amount of documents. This can be extremely time-consuming and labor intensive for both the business being acquired and the acquirer. A VDR can be utilized to efficiently transfer all of this information via secured platforms.
M&A is a complex business process that can pose significant security risks, irrespective of the industry. During the integration and operations phases of the M&A cycle the M&A team needs to be aware of dangers from cybercriminals and their competitors. These risks could include malware, unauthorised access to systems and networks or systems, sabotage, and various forms of disruption that can affect the M&A value offer.
M&A can turn into a rewarding and profitable business experience when you have the appropriate cybersecurity solutions. M&A can provide businesses with an opportunity to expand their footprint and enhance their value. To ensure that this value isn’t compromised, a M&A-focused cybersecurity strategy must be in place prior to when transactions begin. To learn more read 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 that makes cybersecurity possible via M&A. It delivers visibility, cuts through the complexity of the various security stacks, and manages uncertainty and risk to help your company reach its goals.