As mergers and purchases (M&As) increase around the world, cybersecurity is more important than ever. If confidential information is accidentally 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 aid M&A CISOs to ensure the integrity of information, maintain compliance, and safeguard against the risks that come with M&A activities. This includes the right data room solution that combines several digital tools into a single integrated platform that allows for simple file uploads and single sign-on. It also provides complete auditing and reporting which helps compliance teams maintain control and prevent accidental disclosure.
Virtual data rooms are an effective tool to manage the M&A processes, from due diligence to post-M&A operations and integration. VDRs allow authorized users to review and share sensitive documents without the risk of leaks. They also allow users to create activity reports that show who has accessed or read specific pages of documents. These reports can deter bad actors from leaking data since they can be traced back to specific users. They also allow M&A CISOs assess the level of attention from potential investors or buyers.
Many M&A transactions are based on intellectual property. Life science companies, for instance rely on virtual data rooms to handle everything from clinical trial outcomes and HIPAA compliance to licensing IP and storage of patient files. When conducting M&A due diligence, it’s common for companies to have to furnish and review volumes of documents. This can be a lengthy and labor-intensive process for both the business being purchased and the buyer. A VDR can be used to share all of this data over an secure platform.
Whatever the field, M&A can be a complicated business process that can pose significant security risks. The M&A team must be aware of the potential risk from adversaries, cybercriminals and disgruntled employees during the operational and integration phases of the M&A lifecycle. The risks could include malware, unauthorised access to the system or network, sabotage and other disruptions that could harm the M&A’s business model.
M&A can turn into profitable and rewarding business virtual data room comparison experience if you choose the best cybersecurity solutions. M&A is a great opportunity for businesses to add value and expand their global footprint. Before any transaction can commence the process, an M&A specific cybersecurity strategy must be put in place to ensure the value of the deal is not diminished. To find out more, download 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 gives transparency, cuts through the complexity of the various security stacks, and manages uncertainty and risk to help your company reach its goals.