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 in post-M&A activities, the stakes are high.
The good news is that the appropriate software can assist M&A CISOs ensure the accuracy of information, maintain compliance, and protect against the risks that come with M&A activities. The right data room solution brings together digital tools into one integrated platform that enables simple file uploads, one sign-on, and a complete auditing. This assists compliance teams to maintain control by stopping accidental disclosure.
Virtual data rooms are a fantastic way to manage the M&A process from due diligence to post-M&A integration and operations. VDRs permit users with access to read and share comments on sensitive documents, without risk of leakage. They also have the capability to create activity reports that show who has accessed and read specific pages of documents. These reports can discourage criminals from leaking information because they can trace them back to the individual user. These reports can also help M&A CISOs assess the level interest from potential buyers or investors.
Many M&A deals are founded on the value of intellectual property. Life science companies, for instance, depend on virtual data rooms to manage everything from clinical trial results and HIPAA compliance to licensing IP as well as storage of patient files. During data room reviews M&A due diligence, it is typical for companies to have to supply and review a large amount of documents. This can be very time consuming and labor intensive for both the business that is acquired and the acquirer. A VDR can be used to share all this information via a secure platform.
M&A is a complicated business process that can pose significant security risks, no matter the industry. The M&A team must be aware of the potential risk from cybercriminals, competitors and disgruntled employees during the phase of integration and operation of the M&A lifecycle. These risks could include malware, unauthorized access to networks and systems and sabotage as well as other types of disruption that could affect the M&A value offer.
With the right M&A-focused security solutions in place, M&A can be a profitable and rewarding business experience. M&A can be a fantastic opportunity for businesses to create value and expand their global footprint. To ensure that this value is not compromised, a M&A-focused cybersecurity strategy should be in place before any transactions begin. Download our free guide on cybersecurity for M&A – From the M&A Playbook to learn more. Todd Thiemann is director of product marketing for ReliaQuest GreyMatter, a Security Operations Platform that can make cybersecurity a reality through M&A by providing visibility, cutting through the complexity of heterogeneous security stacks and reducing risk and uncertainty so that your company can achieve its objectives.