As mergers and acquisitions (M&A) grow all over the world security is more important than ever for companies. The stakes are high when confidential information is accidentally divulged to bad actors during M&A due diligence, or accidentally exposed during post-M&A integration and operations.
The good news is that the right software can assist M&A CIOs in ensuring the integrity of data, keeping compliance, and defending against the risks associated with M&A activities. This includes a data room solution that consolidates different digital tools into a single platform that is easy to use with uploads of files and a single sign-on, and offers extensive auditing and reporting options which helps compliance teams maintain control of their data and prevent accidental disclosure.
Virtual data rooms can be an ideal tool for managing the M&A processes, from due diligence to post-M&A operations and integration. VDRs allow users with access to read or share and comment on sensitive documents with no risk of leakage. They also let users create activity reports that show who has read or accessed specific pages of documents. These reports can stop malicious actors from leaking information because they can be traced back to specific users. These reports can also help M&A CISOs assess the level interest from potential buyers or investors.
Many M&A transactions are founded on intellectual property. Life science companies, for example depend on virtual data rooms to manage everything from clinical trial outcomes and HIPAA compliance to licensing IP and the storage of patient files. It is not unusual for companies to review and provide massive volumes of documents as part of M&A due-diligence. This can be a lengthy and labor-intensive process for both the company that is acquired and the buyer. A VDR can be used to efficiently share all this information on secured platforms.
M&A is a complicated business process that can pose significant security risks, irrespective of the industry. The M&A team needs to be aware of the potential risk from cybercriminals, competitors and disgruntled employees during the phase of integration and operation of the M&A lifecycle. These risks could include malware, unauthorised access to the system or network, sabotage, and other disruptions that could undermine M&A’s value proposition.
M&A can be an exciting and profitable business experience when you have the right cybersecurity solutions. M&A is a huge chance for businesses to increase value and expand their global reach. Before any transaction can begin, a M&A specific cybersecurity strategy must be implemented to ensure that the value of this deal is not diminished. To find out more about this, download our free guide, Cybersecurity for M&A: From the M&A Playbook. Todd Thiemann is director of product marketing for ReliaQuest GreyMatter, a Security Operations Platform that makes cybersecurity possible through M&A by delivering visibility, cutting through the complexity of diverse security stacks and reducing risk and uncertainty so your company can achieve its goals.