As mergers and acquisitions (M&A) increase all over the world security is more important than ever for companies. The stakes are extremely high when confidential information is accidentally disclosed to bad faith actors during M&A due diligence, or accidentally disclosed during post-M&A integration or operations.
The good news is that the appropriate software can aid M&A CISOs ensure the integrity of data, ensure compliance, and safeguard against the risk associated with M&A activities. This includes the best data room solution that combines different digital tools into a single integrated platform, with simple uploads of data and single sign-on. It also provides comprehensive auditing and reports which helps compliance teams maintain 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 to post-M&A integration and operations. VDRs make it easy for authorized users to read and share sensitive documents without the risk of leaks. They also provide the ability to create activity reports that show who has accessed and read specific pages of documents. These reports can deter criminals from leaking information, since they can be traced back to individual 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. Virtual data rooms are employed by life science companies to handle everything from clinical trials to HIPAA compliance, from licensing IP to storage of patient data. When it comes to M&A due diligence, it is typical for companies to to provide and review large volumes of documents. This can be a very labor-intensive and time-consuming task for both the business being acquired and the buyer. A VDR allows you to share all this information securely and efficiently.
M&A is a complicated business process that poses significant security risks, irrespective of the industry. In the integration and operation phases of the M&A cycle and beyond, the M&A team needs to be aware of potential threats posed by cybercriminals and competitors. These risks include malware, unauthorised access to systems and networks, sabotage, and other disruptions that can make M&A less valuable.
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 companies to add value and expand their global reach. Before any transaction can begin the process, an M&A specific cybersecurity strategy must be put in place to ensure the value of the deal is not diminished. Download our free guide Cybersecurity for M&A – Part of the M&A Playbook to learn more. Todd Thiemann, director of marketing for products at ReliaQuest GreyMatter is a Security Operations Platform which can make cybersecurity possible through M&A. It provides transparency, cuts through the complex security stacks that are heterogeneous, and manages risk and uncertainty to help your business reach its goals.