As mergers and acquisitions (M&A) increase around the world cybersecurity is more important than ever for businesses. If confidential information is revealed during M&A due-diligence, or during post-M&A operations, the stakes are high.
The good news is that the right software can help M&A CISOs to ensure the integrity of data, ensure the compliance of their organization, and help protect against the risks that come with M&A activities. The best data room solution brings together digital tools into one integrated platform that allows easy file uploads, single sign-on and comprehensive auditing. This assists compliance teams to maintain control by preventing accidental disclosure.
Virtual data rooms are an excellent method of managing the M&A process, from due diligence through post-M&A integration and operations. VDRs make it simple for authorized users to read and share sensitive documents without the risk 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 criminals from leaking information, since they can be traced back to individual users. They also allow M&A CISOs assess the level of attention from potential investors or buyers.
Many M&A deals are dependent on the value of intellectual property. Virtual data rooms are employed by life science companies to manage everything from clinical trials to HIPAA compliance, to 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 extremely time-consuming and labor-intensive for both the company that is acquired and the acquirer. A VDR lets you share this information safely and efficiently.
M&A is a complicated business process that can pose significant security risks, no matter the data room due diligence industry. During the integration and operations phases of the M&A cycle and beyond, the M&A team must be aware of the possible risks that cybercriminals and rivals pose. These risks could include malware, unauthorised access to systems and networks or systems, sabotage, and various kinds of disruptions that could harm the M&A value proposition.
With the right M&A-focused security measures in place M&A can be a profitable and enjoyable business experience. M&A can provide businesses with an opportunity to expand their footprint and create value. To ensure that this value is not diminished, a cybersecurity-focused M&A strategy should be in place prior to when transactions are initiated. Download our free guide on cybersecurity for M&A – From the M&A Playbook to learn more. Todd Thiemann is director of product marketing at ReliaQuest GreyMatter, a Security Operations Platform that helps to make cybersecurity possible through M&A and provides transparency, reducing the complexity of multiple security platforms and minimizing risk and uncertainty so that your company can achieve its goals.