As mergers and purchases (M&As) increase across the globe cybersecurity is more important than ever. The stakes are high, in the event that confidential information is not knowingly divulged to bad actors during M&A due diligence, or accidentally disclosed in the post-M&A process of integration and operations.
The good news is that the right software can assist M&A CISOs to ensure the integrity of information, maintain compliance, and guard against the risks that come with M&A activities. This is why they need the right data room software that combines several digital tools into a single integrated platform with easy file uploads and single sign-on. Additionally, it provides complete auditing and reporting which helps compliance teams maintain the control over their information and prevent accidental disclosure.
Virtual data rooms are a fantastic method of managing the M&A process, from due diligence through post-M&A integration and operations. VDRs enable authorized users to review and comment on sensitive documents with no risk of leaks. They also permit users to create activity reports which show who has accessed or read specific pages of documents. These reports can stop criminals from leaking information because they can be traced back to individuals. They also allow M&A CISOs determine the level of interest from potential investors or buyers.
Many M&A transactions are built around intellectual property. Life science companies, for instance 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. It is not uncommon for companies to be required to review and provide large volumes of documents during M&A due-diligence. This can be a time-consuming and labor-intensive process for both the company that is acquired and the acquirer. A VDR can be used to transfer all this data via a secure platform.
M&A is a complicated business process that poses significant security risks, irrespective of the industry. The M&A team must be aware of the risk posed by competitors, cybercriminals and disgruntled employees during the phase of integration and operation of the M&A lifecycle. The risks could include malware, unauthorized access to systems and networks, sabotage and other disruptions that can undermine M&A’s value proposition.
M&A can be an enjoyable and profitable business experience when you have the appropriate cybersecurity solutions. M&A can be a fantastic opportunity for businesses to add value and expand their reach globally. Before any transaction can take place there must be an M&A focused cybersecurity strategy should be implemented to ensure that the value of the deal is not diminished. 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 that allows cybersecurity to be achieved through M&A. It gives transparency, cuts through the multi-layered security stacks and helps manage risk and uncertainty to help your company reach its goals.