As mergers due diligence room and acquisitions (M&A) increase across the globe security is more important than ever for businesses. The stakes are very high when confidential information is accidentally divulged to bad actors during M&A due diligence, or is accidentally revealed during post-M&A integration or operations.
The good news is the right software can help M&A CISOs in ensuring integrity of their data, maintaining compliance, and safeguarding against the risks associated M&A activities. This includes a data room software that combines diverse digital tools into one single integrated platform, with simple uploads of files and single sign-on, and offers complete auditing and reporting that helps compliance teams maintain control and prevent accidental disclosure.
Virtual data rooms are a fantastic method of managing the M&A process, from due diligence through post-M&A integration and operations. VDRs make it easy for authorized users to read, share and comment on sensitive documents with no risk of leaks. They also permit users to create activity reports that show who has accessed and read specific document pages. These reports can discourage people who are leaking data since they can be traced back to specific users. They can also help M&A CISOs assess the level of interest from potential investors or buyers.
Many M&A transactions are dependent on intellectual property. Virtual data rooms are employed by life science companies to handle everything from clinical trial results to HIPAA compliance, from licensing IP to storage of patient data. During M&A due diligence, it is normal for companies to have to supply and review a large amount of documents. This can be a very labor-intensive and time-consuming process for both the company that is acquired and the acquirer. A VDR allows you to share this information securely and efficiently.
Whatever the field, M&A can be a complex business process that could create significant security risks. In the integration and operation phases of the M&A cycle, the M&A team needs to be aware of possible risks of cybercriminals as well as competitors. These risks include malware, unauthorised access to systems and networks as well as sabotage and other disruptions that can undermine M&A’s value proposition.
With the right M&A-focused security measures in place M&A can be a profitable and enjoyable business experience. M&A is a huge opportunity for companies to add value and expand their global footprint. Before any transaction can be initiated it is essential that an M&A targeted cybersecurity plan should be implemented to ensure the value of this deal is not diminished. Download our free guide on cybersecurity for M&A – Part of the M&A Playbook to learn more. Todd Thiemann is director of marketing for the product of ReliaQuest GreyMatter, a Security Operations Platform that helps to make cybersecurity possible through M&A by delivering transparency, reducing the complexity of heterogeneous security platforms and minimizing risks and uncertainty to ensure that your business can meet its goals.