As mergers and acquisitions (M&A) are increasing across the globe, cybersecurity becomes more critical than ever before for businesses. If sensitive information is accidentally divulged during M&A due-diligence or in post-M&A activities, the stakes are high.
The good news is the appropriate software can aid M&A CIOs in ensuring the integrity of data, maintaining compliance, and protecting against the risks that come with M&A activities. This includes the best data room software that combines various digital tools into a single integrated platform, with simple uploads of files and single sign-on, and offers comprehensive auditing and reports that aids compliance teams in maintaining control and prevent accidental disclosure.
Virtual data rooms are an excellent method of managing the data room service providers M&A process from due diligence to post-M&A integration and operations. VDRs enable authorized users to review and comment on sensitive documents without fear of leaks. They also allow users to generate activity reports that detail who has read and accessed specific pages of documents. These reports can deter criminals from leaking information since they can be traced back to individual users. They also permit M&A CISOs to evaluate the level of interest from potential investors or buyers.
Many M&A transactions are based on intellectual property. Virtual data rooms are employed by life science companies to handle everything from clinical trials to HIPAA compliance, to licensing IP to storing patient files. When conducting M&A due diligence, it’s common for companies to to supply and review a large amount of documents. This can be time consuming and labor intensive for both the company that is acquired and the buyer. A VDR lets you transfer all this information securely and efficiently.
M&A is a complicated business process that can pose significant security risks, irrespective of the industry. In the integration and operation phases of the M&A cycle The M&A team must be aware of the potential threats posed by cybercriminals and competitors. These risks may include malware, unauthorized access to networks and systems and sabotage as well as other forms of disruption that can harm the M&A value proposition.
With the right security solutions in place, M&A can be a profitable and rewarding business experience. M&A gives businesses an opportunity to increase their global footprint and enhance their value. Before any transaction can take place there must be an M&A specific cybersecurity strategy must be implemented to ensure the value of this deal is not compromised. Download our free guide Cybersecurity for M&A – Part of 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 the multi-layered security stacks and manages uncertainty and risk to help your company reach its goals.