As mergers and acquisitions (M&A) accelerate across the globe cybersecurity is more important than ever for business. If confidential information is accidentally disclosed during M&A due-diligence or post-M&A transactions, the stakes are high.
The good news is that the appropriate software can aid M&A CISOs maintain the integrity of data, maintain compliance, and safeguard against the risks associated with M&A activities. This includes the best data room solution that combines diverse digital tools into one single platform that is easy to use with file uploads and single sign-on. It also provides complete auditing and reporting that aids compliance teams in maintaining control of their data 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 processes and integration. VDRs make it easy for authorized users to read and share sensitive documents without the risk of leaks. They also let users create activity reports which show who has read or accessed specific pages of documents. These reports will deter people who are leaking data since they can be traced back to the individual user. These reports also help M&A CISOs evaluate the level interest from potential buyers or investors.
Many M&A deals are based on the value of intellectual property. Life science companies, for instance rely on virtual data rooms to handle everything from clinical trial results and HIPAA compliance to licensing IP and storages of patient records. During M&A due diligence, it’s common for companies to to furnish and review volumes of documents. This can be extremely time consuming and labor intensive for both the business being acquired and the acquirer. A VDR allows you to transfer all this information securely and efficiently.
No matter what industry, M&A can be a complex business process that may present significant security risks. The M&A team must be aware of the risk posed by competitors, cybercriminals and disgruntled employees during the operational and integration phases of the M&A lifecycle. These risks may include malware, unauthorized access to systems and networks or systems, sabotage, and various forms of disruption that can affect the M&A value proposition.
With the right security measures in place M&A can be a profitable and rewarding business experience. M&A provides businesses with an excellent opportunity 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 prior to when transactions begin. To find out more, download our free guide Cybersecurity for M&A from the M&A Playbook. Todd Thiemann is director of marketing for the product of ReliaQuest datarooms.in GreyMatter, a Security Operations Platform that helps to make cybersecurity possible through M&A, delivering transparency, removing the complexity of heterogenous security stacks, and reducing risk and uncertainty so your company can achieve its goals.