As mergers and acquisitions (M&A) increase around the world cybersecurity is more important than ever before for businesses. The stakes are high if confidential information is unwittingly divulged to bad actors during M&A due diligence, or accidentally revealed in post-M&A integration and operations.
The good news is that the right software can help M&A CISOs maintain the integrity of data, ensure compliance, and protect against the dangers associated with M&A activities. This includes the best data room software that combines diverse digital tools into one single platform that is easy to use with uploads of files and a single sign-on. It also provides complete auditing and reporting that helps compliance teams maintain control and avoid accidental disclosure.
Virtual data rooms are an ideal tool for managing the M&A processes, from due diligence to post-M&A activities and integration. VDRs allow authorized users to review or share and comment on sensitive documents with no risk of leakage. They also provide the ability to generate activity reports that detail who has read and accessed specific pages of documents. These reports will deter bad actors from leaking information as they can be traced to the individual users. These reports also allow M&A CISOs evaluate the level interest from potential investors or buyers.
Many M&A transactions are dependent on intellectual property. Virtual data rooms are utilized by life science companies to handle everything from clinical trial results to HIPAA compliance, from licensing IP to storing patient files. It is not uncommon for companies to be asked to review and supply huge volumes of documentation during M&A due-diligence. This can be labour-intensive and time-consuming for both the company that is acquired and the buyer. A VDR lets you transfer all this information securely and efficiently.
M&A is a complicated business process that could pose significant security risks, regardless of the industry. The M&A team needs to understand the potential threat posed by adversaries, cybercriminals and disgruntled employees during the operational and integration phases of the M&A lifecycle. These risks could include malware, unauthorised network and system access, sabotage and other disruptions that can harm the M&A’s business model.
With the right cybersecurity solutions in place, M&A can be a lucrative and enjoyable business experience. M&A offers businesses a great chance to expand their global footprint and create value. Before any transaction can take place it is essential that an M&A focused cybersecurity strategy should be implemented to ensure the value of this deal is not compromised. To learn more, download our free guide Cybersecurity for M&A from the M&A Playbook. Todd Thiemann is director of product marketing at ReliaQuest GreyMatter, a Security Operations Platform that can make cybersecurity a reality through M&A and provides transparency, removing the complexity of heterogenous security platforms and minimizing risk and uncertainty so your company can reach https://datarooms.in/ its goals.