As mergers and acquisitions (M&As) increase across the globe cybersecurity is more important than ever. If confidential information is revealed during M&A due-diligence or in post-M&A operations, the stakes are high.
The good news is that the appropriate software can assist M&A CISOs maintain the integrity of information, maintain the compliance of their organization, and help protect against the risks that come with M&A activities. The best data room solution integrates digital tools into an integrated platform that allows for simple uploads of files, a single sign-on, and a complete auditing. This helps compliance teams keep control by stopping accidental disclosure.
Virtual data rooms are an excellent method of managing the M&A process from due diligence to post-M&A integration and operations. VDRs permit authorized users to quickly review, share, and comment on sensitive documents with no risk of leakage. They also permit users to create activity reports that indicate who has read and accessed specific document pages. These reports can deter criminals from leaking information since they can be traced back to specific users. These reports also help M&A CISOs evaluate the level interest from potential buyers or investors.
Many M&A deals are dependent on the value of intellectual property. Life science companies, for instance, utilize virtual data rooms to handle everything from clinical trials’ results and HIPAA compliance to licensing IP and storage of patient files. During M&A due diligence, it is normal for companies to to furnish and review volumes of documents. This can be a very time-consuming and labor-intensive process for both the business being acquired and the buyer. A VDR lets you share this information securely and efficiently.
M&A is a complicated business procedure that can create significant security risks, regardless of the industry. During the integration and operations phases of the M&A cycle, the M&A team needs to be aware of potential threats posed by cybercriminals and competitors. These risks include malware, unauthorized access to the system or network as well as sabotage and data rooms other disruptions that could undermine M&A’s value proposition.
M&A could be a rewarding and profitable business experience if you choose the best cybersecurity solutions. M&A can provide businesses with an opportunity to expand their footprint and add value. Before any transaction can take place it is essential that an M&A specific cybersecurity strategy must be in place to ensure that the value of this deal is not compromised. For more information read our free guide Cybersecurity for M&A from the M&A Playbook. Todd Thiemann, director of product marketing at ReliaQuest GreyMatter is a Security Operations Platform which allows cybersecurity to be achieved through M&A. It delivers visibility, cuts through multi-layered security stacks and helps manage risk and uncertainty to help your company reach its goals.