Ahyan Yousuf As mergers and acquisitions (M&As) increase across the globe, cybersecurity is more important than ever. 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 ensure the accuracy of information, maintain compliance, and protect against the risks that come with M&A activities. The right data room solution integrates digital tools into one integrated platform that allows simple uploads of files, a single sign-on, and a complete auditing. This assists compliance teams to maintain control by keeping out any 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 allow authorized users to review and comment on sensitive documents without fear of leaks. They also permit users to create activity reports, which reveal who has read or accessed specific pages of documents. These reports can deter people who are leaking data since they can be traced back to specific users. These reports also let M&A CISOs to evaluate the level of interest from potential buyers or investors.
Many M&A transactions are dependent on intellectual property. Life science companies, for instance, utilize virtual data rooms to handle everything from clinical trial outcomes and HIPAA compliance to licensing IP and storage of patient files. In the course of 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 business that is acquired and the buyer. A VDR allows you to share this information safely and efficiently.
M&A is a complex business process that can pose significant security risks, no matter the industry. The M&A team needs to understand the potential risks posed by adversaries, cybercriminals and disgruntled employees during the operations and integration phases of the M&A lifecycle. The risks could include malware, unauthorized network and system access, sabotage and other disruptions that could affect the value proposition of M&A.
M&A can turn into profitable and rewarding business experience with the best cybersecurity solutions. M&A provides businesses with an excellent chance to expand their global footprint and add value. Before any transaction can begin it is essential that an M&A focused cybersecurity strategy must be put in place 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 is director of product marketing for ReliaQuest GreyMatter, a Security Operations Platform that makes cybersecurity possible through M&A by providing visibility, cutting through the complexity of heterogenous security stacks, and reducing risks and uncertainty to ensure that your company can achieve its goals.
