As mergers and acquisitions (M&As) increase around the world cybersecurity is more crucial than ever. If sensitive information is accidentally divulged during M&A due diligence or in post-M&A operations, the stakes are high.
The good news is the right software can assist M&A CISOs in ensuring the integrity of data, keeping compliance, and protecting against the risks associated with M&A activities. The best data room solution integrates digital tools into an integrated platform that allows for easy uploads of files, single sign-on and comprehensive auditing. This helps compliance teams keep control by stopping accidental disclosure.
Virtual data rooms are an excellent method of managing the M&A process from due diligence to post-M&A integration and operations. VDRs enable authorized users to read and share sensitive documents with no risk of leaks. They also provide the ability to create activity reports that reveal who has read and accessed specific pages of documents. These reports can discourage people who are leaking data because they can trace them back to individual users. These reports can also help M&A CISOs evaluate the level interest from potential investors or buyers.
Many M&A transactions are founded on intellectual property. Virtual data rooms are employed by life science companies to handle everything, from clinical trial results to HIPAA compliance, to licensing IP to the storage of patient files. When it comes to M&A due diligence, it’s common for companies to to submit and review large amounts of documents. This can be extremely time consuming and labor intensive for both the company being acquired and the acquirer. A VDR can be used to efficiently share all this information over an secure platform.
Regardless of the industry, M&A can be a complicated business process that can present significant security risks. In the integration and operation phases of the M&A cycle, the M&A team must understand the potential risks of cybercriminals as well as competitors. These risks may include malware, unauthorized access to systems and networks or systems, sabotage, and various kinds of disruptions that could compromise the M&A value proposition.
M&A can be an enjoyable and profitable business experience if you choose the appropriate cybersecurity solutions. M&A gives businesses an opportunity to increase their global footprint and enhance their value. Before any transaction can take place the process, an M&A specific cybersecurity strategy must be implemented to ensure the value of this deal is not diminished. To learn more read our free guide, Cybersecurity for M&A from the M&A Playbook. Todd Thiemann, director of marketing for products at ReliaQuest GreyMatter is a Security Operations Platform that allows cybersecurity to be achieved through M&A. It provides visibility, cuts through complex security stacks that are heterogeneous, and helps manage risk and uncertainty to help your company reach its goals.