As mergers and acquisitions (M&As) increase around the world cybersecurity is more important than ever. If sensitive information is accidentally divulged during M&A due-diligence or post-M&A operations, the stakes are high.
The good news is the right software can assist M&A CIOs in ensuring the integrity of their data, maintaining the compliance of the law, and reducing the risks associated with M&A activities. The best data room solution brings together digital tools into one integrated platform that allows simple uploads of files, a single sign-on and extensive auditing. This helps compliance teams maintain control by preventing accidental disclosure.
Virtual data rooms are an excellent tool for managing the M&A processes, from due diligence to post-M&A activities and integration. VDRs allow authorized users to quickly review comments, share, and even comment on sensitive documents with no risk of leakage. They also let users create activity reports, which reveal who has accessed or read specific pages of documents. These reports will deter bad actors from leaking information because they can be traced back to individual users. These reports can also help M&A CISOs to evaluate the level of interest from potential investors or buyers.
Many M&A deals are based on the value of intellectual property. Life science companies, for example depend on virtual data rooms to handle everything from clinical trial results and HIPAA compliance to licensing IP and storage of patient records. It is not unusual for companies to be asked to review and provide large volumes of documents during M&A due-diligence. This can be very time consuming and labor intensive for both the company that is acquired and the acquirer. A VDR can be used to transfer all this data over a secure platform.
Whatever the industry, M&A can be a complex business process that may be a significant security risk. During the integration and operations phases of the M&A cycle The M&A team must understand the dangers from cybercriminals and their competitors. These risks can include malware, unauthorised access to the system or network or sabotage as well as other disruptions that could make M&A less valuable.
M&A can be an enjoyable and profitable business experience with the right cybersecurity solutions. M&A provides businesses with an excellent opportunity to expand their global footprint and add value. Before any transaction can commence it is essential that an M&A focused cybersecurity strategy should be implemented to ensure that the value of the deal is not compromised. Download our free guide 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 makes cybersecurity possible through M&A by providing visibility, cutting through the complexity of heterogeneous security stacks, and reducing risk and uncertainty so that your business can meet its goals.