As mergers and acquisitions (M&As) increase across the globe cybersecurity is more crucial than ever before. The stakes are high, should confidential information be accidentally disclosed to bad faith actors during M&A due diligence, or is accidentally revealed in post-M&A integration and operations.
The good news is that the right software can help M&A CISOs in ensuring the integrity of data, ensuring the compliance of the law, and reducing the risks that come with M&A activities. This includes a data room software that integrates several digital tools into a single integrated platform that allows for simple uploads of files and a single sign-on. It also provides complete auditing and reporting which helps compliance teams maintain the control over their information and prevent accidental disclosure.
Virtual data rooms are an excellent tool for managing the M&A processes, from due diligence to post-M&A processes and integration. VDRs make it easy for authorized users to read, share and comment on sensitive documents without fear of leaks. They also provide the ability to generate activity reports that detail who has read and accessed specific pages of documents. These reports can stop bad actors from leaking information since they can be traced to the individual users. These reports also let M&A CISOs to evaluate the level of interest from potential buyers or investors.
Many M&A deals are dependent on the value of intellectual property. Virtual data rooms are employed by life science companies to handle everything from clinical trial results to HIPAA compliance, to licensing IP and storing patient files. It is not uncommon for companies to be asked to review and provide huge volumes of documentation during M&A due-diligence. This can be extremely labour-intensive and time-consuming for both the company being acquired and the buyer. A VDR lets you share this information safely and efficiently.
M&A data room m&a is a complex business procedure that can create significant security risks, no matter the industry. The M&A team needs to understand the risk posed by adversaries, cybercriminals and disgruntled employees during the operations and integration phases of the M&A lifecycle. The risks could include malware, unauthorised network and system access, sabotage, and other disruptions that can undermine M&A’s value proposition.
M&A could be an enjoyable and profitable business experience if you choose the right cybersecurity solutions. M&A can provide businesses with an chance to expand their global footprint and enhance their value. To ensure that this value isn’t diminished, a cybersecurity-focused M&A strategy should be in place before any transactions begin. For more information, download our free guide, Cybersecurity for M&A from the M&A Playbook. Todd Thiemann is director of marketing for the product of ReliaQuest GreyMatter, a Security Operations Platform that allows cybersecurity to be achieved through M&A by providing transparency, removing the complexity of heterogeneous security platforms and minimizing the risk and uncertainty so that your company can achieve its goals.