As mergers and acquisitions (M&A) accelerate all over the world cybersecurity is more important than ever for businesses. If confidential information is accidentally disclosed during M&A due diligence or in post-M&A transactions, the stakes are high.
The good news is that the appropriate software can aid M&A CISOs ensure the integrity of data, ensure compliance, and protect against the dangers associated with M&A activities. This includes a data room software that combines different digital tools into a single integrated platform, with simple uploads of files and single sign-on. It also offers comprehensive auditing and reports that aids compliance teams in maintaining the control over their information and prevent accidental disclosure.
Virtual data rooms can be a wonderful way to manage the M&A process, from due diligence through post-M&A integration and operations. VDRs enable authorized users to review, share and comment on sensitive documents without the risk of leaks. They also let users create activity reports which show who has read or accessed specific pages of documents. These reports will deter people who leak information from being caught because they can be traced back to individual users. These reports can also help M&A CISOs evaluate the level interest from potential investors or buyers.
Many M&A deals are founded on the value of intellectual property. Virtual data rooms are employed by life science companies to handle everything, from clinical trials to HIPAA compliance, from licensing IP and the storage of patient files. It is not uncommon for companies to be asked 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 can be used to transfer all this data via secured platforms.
No matter what industry, M&A can be a complex business procedure that can create significant security risks. The M&A team must understand the risk posed by competitors, cybercriminals and disgruntled employees during the operational and integration phases of the M&A lifecycle. These risks could include malware, unauthorised access to networks and systems or systems, sabotage, and various types of disruption that could affect the M&A value proposition.
M&A can turn into profitable and rewarding business venture if you use the right cybersecurity solutions. M&A is a great opportunity for companies to add value and expand their global reach. To ensure that this value is not compromised, a focused cybersecurity strategy must be in place prior to any transactions begin. Download our free guide Cybersecurity for M&A – From the M&A Playbook to learn more. Todd Thiemann, director of product marketing at ReliaQuest GreyMatter is a Security Operations Platform that allows cybersecurity to be achieved through M&A. It delivers visibility, cuts through data room providers complexity of the various security stacks, and manages risk and uncertainty to help your company reach its goals.