As mergers and acquisitions (M&As) increase across the globe cybersecurity is more critical than ever. The stakes are high in the event that confidential information is not knowingly divulged to bad actors during M&A due diligence, or is accidentally revealed in the post-M&A process of integration and operations.
The good news is the right software can help M&A CISOs in ensuring the integrity of data, keeping compliance, and protecting against the risks associated M&A activities. The right data room solution consolidates digital tools into one integrated platform that allows for easy uploads of files, single sign-on, and a complete auditing. This assists compliance teams in maintaining control by stopping accidental disclosure.
Virtual data rooms are an excellent way to manage the M&A process, from due diligence through post-M&A integration and operations. VDRs allow authorized users to read and share sensitive documents without the risk of leaks. They also have the capability to create activity reports that reveal who has accessed and read specific document pages. These reports can discourage people who are leaking data since they can be traced back to the individual user. They also permit 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. Virtual data rooms are employed by life science companies to handle everything, from clinical trial results to HIPAA compliance, to licensing IP and the storage of patient files. When it comes to M&A due diligence, it is common for companies to have to furnish and review volumes of documents. This can be extremely labour-intensive and time-consuming for both the business that is acquired and the acquirer. A VDR can be used to efficiently transfer all of this information through an secure platform.
M&A is a complex business process that poses significant security risks, regardless of the industry. In the integration and operation phases of the M&A cycle the M&A team must understand the possible risks posed by cybercriminals and competitors. These risks could include malware, unauthorised access to systems and networks, sabotage, and other forms of disruption that can affect the M&A value https://datarooms.in/due-diligence-data-rooms/ proposition.
With the right cybersecurity solutions in place, M&A can be a lucrative and rewarding business experience. M&A gives businesses an opportunity to expand their footprint and add value. To ensure that this value isn’t compromised, a focused cybersecurity strategy should be in place prior to any transactions are initiated. Download our free guide Cybersecurity for M&A – From the M&A Playbook to learn more. Todd Thiemann is director of product marketing for ReliaQuest GreyMatter, a Security Operations Platform that makes cybersecurity possible through M&A and provides transparency, removing the complexity of heterogeneous security stacks and reducing risk and uncertainty so your business can meet its goals.