As mergers and acquisitions (M&A) grow around the world security is more important than ever for business. If sensitive information is accidentally divulged during M&A due-diligence, or during post-M&A activities, the stakes are high.
The good news is that the appropriate software can aid M&A CISOs in ensuring the integrity of data, maintaining compliance, and safeguarding against the risks associated with M&A activities. The best data room solution brings together digital tools into one integrated platform that allows for easy file uploads, single sign-on and complete auditing. This helps compliance teams maintain control by making sure that they do not accidentally disclose information.
Virtual data rooms are a fantastic method of managing the M&A process from due diligence to post-M&A integration and operations. VDRs allow authorized users to review, share, and comment on sensitive documents without risk of leakage. They also allow users to create activity reports that show who has read and accessed specific document pages. These reports can deter criminals from leaking information since they can be traced back to specific users. They also allow M&A CISOs to assess the level of interest from potential investors or buyers.
Many M&A transactions are founded on intellectual property. Life science companies, for instance rely on virtual data rooms to handle everything from clinical trials’ results and HIPAA compliance to licensing IP as well as storage of patient files. When conducting M&A due diligence, it is typical for companies to have to submit and review large amounts of documents. This can be extremely labour-intensive and time-consuming for both the company being acquired and the acquirer. A VDR can be used to efficiently transfer all this data over an secure platform.
M&A is a complex business procedure that can create significant security risks, no matter the industry. During the integration and operations phases of the M&A cycle the M&A team must understand the potential risks from cybercriminals and their competitors. These risks could include malware, unauthorised access to networks and systems, sabotage, and other forms of disruption that can affect the M&A value proposition.
M&A could be profitable and rewarding business experience if you choose the right cybersecurity solutions. M&A can be a fantastic opportunity for companies to add value and expand their reach globally. Before any transaction can take place there must be an M&A focused cybersecurity strategy must be put in place to ensure 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 that makes cybersecurity possible via M&A. It gives visibility, cuts through the complex security stacks that are heterogeneous, and helps manage risk and uncertainty to help your company reach its goals.