As mergers and acquisitions (M&As) increase around the world cybersecurity is more important than ever before. If confidential information is disclosed during M&A due diligence or in post-M&A processes, the risks are high.
The good news is that the right software can assist M&A CISOs ensure the accuracy of data, maintain compliance, and guard against the dangers associated with M&A activities. This is why they need the right data room solution that consolidates diverse digital tools into one single platform that is easy to use with file uploads and single sign-on. Additionally, it provides comprehensive auditing and reports which 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 enable authorized users to read and share sensitive documents with no risk of leaks. They also allow users to create activity reports that show who has read or accessed specific pages of documents. These reports can deter people who are leaking data because they can trace them back to individual users. These reports can also help M&A CISOs evaluate the level interest from potential buyers or investors.
Many M&A transactions are dependent on intellectual property. Life science companies, for instance rely on virtual data rooms to manage everything from the results of clinical trials and HIPAA compliance to licensing IP and storages of patient files. In the course of M&A due diligence, it is typical for companies to have to supply and review a large amount of documents. This can be a labor-intensive and time-consuming process for both the company that is purchased and the acquirer. A VDR lets you transfer virtual data room pricing all this information securely and efficiently.
Whatever the industry, M&A can be a complex business process that may present significant security risks. The M&A team must be aware of the potential risk from competitors, cybercriminals and disgruntled employees during the operational and integration phases of the M&A lifecycle. The risks could include malware, unauthorized access to systems and networks or sabotage as well as other disruptions that can affect the value proposition of M&A.
With the right cybersecurity solutions in place, M&A can be a lucrative and rewarding business experience. M&A can provide businesses with an opportunity to increase their global footprint and increase their value. To ensure that this value isn't compromised, a M&A-focused cybersecurity strategy should be in place prior to any transactions begin. Download our free guide on cybersecurity for M&A from the M&A Playbook to learn more. Todd Thiemann is director of marketing for the product of ReliaQuest GreyMatter, a Security Operations Platform that allows cybersecurity to be achieved through M&A by delivering transparency, reducing the complexity of diverse security stacks and managing the risk and uncertainty so that your company can achieve its goals.