As mergers and purchases (M&As) increase across the globe cybersecurity is more critical than ever before. If confidential information is disclosed during M&A due-diligence, or during post-M&A activities, the stakes are high.
The good news is that the right software can help M&A CISOs ensure the accuracy of their data, ensure compliance, and safeguard against the risks associated with M&A activities. This includes the right data room software that integrates various digital tools into a single integrated platform, with simple uploads of files and a single sign-on, and offers comprehensive auditing and reports that aids compliance teams in maintaining control and avoid accidental disclosure.
Virtual data rooms are an excellent method of managing the M&A process from due diligence to post-M&A integration and operations. VDRs permit authorized users to quickly review and share comments on sensitive documents with no risk of leakage. They also allow users to create activity reports which show who has accessed or read specific pages of documents. These reports can stop people who leak information from being caught, since they can be traced back to the individual users. These reports also let M&A CISOs to evaluate the level of interest from potential buyers or investors.
Many M&A transactions are built around intellectual property. Life science companies, for example, use virtual data rooms to handle everything from clinical trial results and HIPAA compliance to licensing IP and storage of patient files. In the course of M&A due diligence, it’s common for companies to to submit and review large amounts of documents. This can be very labour-intensive and time-consuming for both the business that is acquired and the acquirer. A VDR can be used to share all of this data on an encrypted platform.
M&A is a complex business process that can pose significant security risks, irrespective of the industry. In the integration and operation phases of the M&A cycle The M&A team must be aware of potential threats posed by cybercriminals and competitors. These risks could include malware, unauthorized access to systems and networks and sabotage as well as other kinds of disruptions that could harm the M&A value offer.
With the right cybersecurity solutions in place, M&A can be a lucrative and enjoyable business experience. M&A can be a fantastic opportunity for businesses to create value and expand their global reach. Before any transaction can be initiated there must be an M&A specific cybersecurity strategy must be implemented to ensure that the value of the deal is not compromised. For more information, 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 that allows cybersecurity to be achieved through M&A. It delivers visibility, cuts through multi-layered security stacks and helps manage risk and uncertainty to help your business reach its goals.