As mergers and acquisitions (M&As) increase across the globe cybersecurity is more critical than ever before. The stakes are high if confidential information is unwittingly disclosed to bad faith actors during M&A due diligence, or accidentally exposed in the post-M&A process of integration and operations.
The good news is that the right software can aid M&A CISOs ensure the integrity of their data, ensure compliance, and protect against the risks that come with M&A activities. The ideal data room software integrates digital tools into an integrated platform that enables simple file uploads, one sign-on and extensive auditing. This assists compliance teams to maintain control by preventing accidental disclosure.
Virtual data rooms are an effective tool to manage the M&A processes from due diligence to post-M&A activities and integration. VDRs allow authorized users to easily review, share, and comment on sensitive documents without risk of leakage. They also permit users to generate activity reports that detail who has accessed and read specific pages of documents. These reports can deter criminals from leaking information since they can be traced back to specific users. These reports also help M&A CISOs evaluate the level interest from potential buyers or investors.
Many M&A transactions are dependent on intellectual property. Virtual data rooms are used by life science companies to manage everything, from clinical trials to HIPAA compliance, from licensing IP and the storage of patient files. It is not unusual for companies to be asked to review and supply massive volumes of documents as part of M&A due-diligence. This can be a lengthy and labor-intensive process for both the company being acquired and the buyer. A VDR can be used to share all of this data via secured platforms.
M&A is a complicated business procedure that can create significant security risks, regardless of the industry. In the integration and operation phases of the M&A cycle and beyond, the M&A team must understand the possible risks that cybercriminals and rivals pose. The risks could include malware, unauthorized access to systems and networks, sabotage, and other disruptions that could make M&A less valuable.
With the right security measures in place M&A can hospitalharrywilliams.org be a profitable and rewarding business experience. M&A is a huge opportunity for companies to add value and expand their international reach. Before any transaction can take place there must be an M&A focused cybersecurity strategy should be implemented to ensure that the value of the deal is not diminished. Download our free guide on cybersecurity for M&A from the M&A Playbook to learn more. Todd Thiemann, director of marketing for products at ReliaQuest GreyMatter is a Security Operations Platform which 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 business achieve its goals.
