As mergers and purchases (M&As) increase all over the world cybersecurity is more crucial than ever before. If confidential information is disclosed during M&A due-diligence or post-M&A operations, the stakes are high.
The good news is that the appropriate software can help M&A CISOs ensure the integrity of data, ensure compliance, and guard against the risks associated with M&A activities. This includes the right data room solution that consolidates several digital tools into a single platform that is easy to use with file uploads and single sign-on, and offers comprehensive auditing and reporting that aids compliance teams in maintaining control and prevent 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 review and share comments on sensitive documents, without risk of leakage. They also let users create activity reports, which reveal who has accessed or read specific pages of documents. These reports can prevent malicious actors from leaking information, since they can be traced to specific users. They also allow M&A CISOs to determine the level of interest from potential investors or buyers.
Many M&A transactions are dependent on intellectual property. Life science companies, for example, rely on virtual data rooms to manage everything from clinical trial results and HIPAA compliance to datarooms.in licensing IP and storages of patient files. It is not uncommon for companies to review and provide massive volumes of documents as part of M&A due-diligence. This can be a lengthy and labor-intensive process for both the company being acquired and the acquirer. A VDR lets you share this information safely and efficiently.
Whatever the industry, M&A can be a complex business process that could create significant security risks. The M&A team needs to be aware of the potential risk from adversaries, cybercriminals and disgruntled employees during the operations and integration phases of the M&A lifecycle. These risks could include malware, unauthorised access to systems and networks or systems, sabotage, and various forms of disruption that can compromise the M&A value offer.
With the right security solutions in place, M&A can be a profitable and enjoyable business experience. M&A can be a fantastic opportunity for businesses to add value and expand their global footprint. Before any transaction can begin the process, an M&A focused cybersecurity strategy should be implemented to ensure the value of this deal is not diminished. To find out more about this, download our free guide Cybersecurity for M&A: From the M&A Playbook. Todd Thiemann is director of marketing for the product of ReliaQuest GreyMatter, a Security Operations Platform that allows cybersecurity to be achieved through M&A by providing transparency, removing the complexity of heterogenous security platforms and minimizing risk and uncertainty so that your company can achieve its objectives.