As mergers and acquisitions (M&A) increase all over the world cybersecurity is more crucial than ever for businesses. If confidential information is revealed during M&A due diligence or in post-M&A transactions, the stakes are high.
The good news is that the right software can help M&A CISOs to ensure the integrity of data, maintain the compliance of their organization, and help protect against the risks associated with M&A activities. The best data room solution consolidates digital tools into one integrated platform that permits simple file uploads, one sign-on and comprehensive auditing. This helps compliance teams maintain control by keeping out any accidental disclosure.
Virtual data rooms are a fantastic way to manage the M&A process, from due diligence through post-M&A integration and operations. VDRs allow authorized users to easily review and share comments on sensitive documents without risk of leakage. They also provide the ability to create activity reports that reveal who has read and accessed specific pages of documents. These reports can discourage bad actors from leaking data because they can trace them back to individual users. They also allow M&A CISOs assess the level of attention from potential buyers or investors.
Many M&A deals are built around the value of 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. When it comes to M&A due diligence, it is common virtual data room software for companies to to submit and review large amounts of documents. This can be a labor-intensive and time-consuming task for both the business being acquired and the acquirer. A VDR can be utilized to efficiently transfer all of this information via an secure platform.
Whatever the industry, M&A can be a complicated business process that can present significant security risks. During the integration and operations phases of the M&A cycle The M&A team must be aware of the dangers that cybercriminals and rivals pose. 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 M&A-focused security solutions in place, M&A can be a lucrative and enjoyable business experience. M&A is a great opportunity for companies to add value and expand their reach globally. To ensure that this value is not compromised, a M&A-focused cybersecurity strategy should be in place prior to when transactions begin. Download our free guide on 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 helps to make cybersecurity possible through M&A by delivering transparency, removing the complexity of diverse security stacks and managing risk and uncertainty so that your company can reach its goals.