As mergers and acquisitions (M&A) grow around the world cybersecurity is more important than ever before for businesses. If confidential information is accidentally disclosed during M&A due-diligence or in post-M&A operations, the stakes are high.
The good news is that the appropriate software can aid M&A CISOs to ensure the integrity of data, keeping compliance, and safeguarding against the risks that come with M&A activities. This includes a data room software that combines various digital tools into a single platform that is easy to use with uploads of files and single sign-on. Additionally, it provides extensive auditing and reporting options that helps compliance teams maintain control and prevent accidental disclosure.
Virtual data rooms can be an effective tool to manage the M&A processes, from due diligence to post-M&A operations and integration. VDRs make it easy for authorized users to read, share and comment on sensitive documents without fear of leaks. They also let users create activity reports, which reveal who has accessed or read specific pages of documents. These reports can discourage those who leak data from being caught since they can be traced back to the individual user. These reports also help M&A CISOs evaluate the level interest from potential investors or buyers.
Many M&A deals are built around the value of intellectual property. Virtual data rooms are utilized by life science companies to handle everything, from clinical trial results to HIPAA compliance, from licensing IP to keeping patient records. It is not uncommon for companies to be required to review and supply massive volumes of documents as part of M&A due-diligence. This can be very time-consuming and labor intensive for both the company that is acquired and the buyer. A VDR allows you to transfer all this information securely and efficiently.
M&A is a complicated business process that can pose significant security risks, regardless of the industry. During the integration and operations phases of the M&A cycle the M&A team must understand the potential threats of cybercriminals as well as competitors. These risks can include malware, unauthorised access to the system or network as well as sabotage and other disruptions that could make M&A less valuable.
M&A can become a rewarding and profitable business experience when you have the appropriate cybersecurity solutions. M&A is a huge opportunity for businesses to add value and expand their global footprint. To ensure that this value isn’t compromised, a M&A-focused cybersecurity strategy should be in place before any transactions begin. To learn more get our free guide, Cybersecurity for M&A: From the M&A Playbook. Todd Thiemann, director of product marketing at ReliaQuest GreyMatter is a Security Operations Platform which makes cybersecurity possible via M&A. It delivers visibility, cuts through complexity heterogeneous security stacks, and helps manage risk and uncertainty to help your company achieve its goals.