As mergers and acquisitions (M&A) accelerate all over the world cybersecurity is more important than ever for companies. If confidential information is accidentally disclosed during M&A due-diligence or post-M&A activities, the stakes are high.
The good news is that the right software can aid M&A CISOs ensure the accuracy of data, maintain the compliance of their organization, and help protect against the risks associated with M&A activities. The best data room solution integrates digital tools into an integrated platform that permits simple uploads of files, a single sign-on, and a thorough auditing. This helps compliance teams keep control by preventing accidental disclosure.
Virtual data rooms can be a wonderful method of managing the M&A process, from due diligence through post-M&A integration and operations. VDRs allow users with access to read comments, share, and even comment on sensitive documents, without risk of leakage. They also provide the ability to create activity reports that reveal who has accessed and read specific pages of documents. These reports can discourage those who leak data from being caught because they can trace them back to individual users. These reports also let M&A CISOs evaluate the level interest from potential investors or buyers.
Many M&A deals are built around the value of intellectual property. Life science companies, for example utilize virtual data rooms to manage everything from clinical trial results and HIPAA compliance to licensing IP as well as storage of patient records. It is not unusual for companies to be required to review and provide large volumes of documents during M&A due-diligence. This can be time-consuming and labor-intensive for both the company being acquired and the buyer. A VDR allows you to transfer all this information securely and efficiently.
Whatever the field, M&A can be a complex business process that could pose significant security risks. In the integration and operation phases of the M&A cycle, the M&A team must be aware of the potential threats posed by cybercriminals and competitors. These risks could include malware, unauthorized network and system access, sabotage, and other disruptions that can harm the M&A’s business model.
With the right security measures in place M&A can be a profitable and rewarding business experience. M&A is a huge chance for businesses to increase value and expand their reach globally. Before any transaction can be initiated there must be an M&A targeted cybersecurity plan should be implemented to ensure that the value of this deal is not compromised. Download our free guide Cybersecurity for M&A from the M&A Playbook to learn more. Todd Thiemann, director of marketing for products at ReliaQuest GreyMatter is a Security Operations Platform which can make cybersecurity possible through M&A. It delivers transparency, cuts through the complexity of the various security stacks, and helps manage risk and uncertainty to help your company reach its goals.