As mergers and purchases (M&As) increase across the globe, cybersecurity is more important than ever before. The stakes are extremely high if confidential information is unwittingly divulged to bad actors during M&A due diligence, or accidentally exposed during post-M&A integration or operations.
The good news is that the right software can help electronic data room M&A CISOs ensure the integrity of data, maintain compliance, and safeguard against the risks associated with M&A activities. The ideal data room software brings together digital tools into one integrated platform that allows easy uploads of files, single sign-on and comprehensive auditing. This assists compliance teams to maintain control by stopping 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 allow authorized users to easily review comments, share, and even comment on sensitive documents, without risk of leakage. They also let users create activity reports which show who has read or accessed specific pages of documents. These reports can deter those who leak data from being caught because they can trace them back to individual users. They can also help M&A CISOs assess the level of attention from potential buyers or investors.
Many M&A transactions are built around intellectual property. Life science companies, for instance, utilize virtual data rooms to manage everything from clinical trial results and HIPAA compliance to licensing IP and the storage of patient files. It is not uncommon for companies to be asked to review and supply huge volumes of documentation during M&A due-diligence. This can be a very labor-intensive and time-consuming task for both the company being purchased and the buyer. A VDR lets you transfer all this information securely and efficiently.
Regardless of the industry, M&A can be a complex business process that could be a significant security risk. During the integration and operations phases of the M&A cycle, the M&A team must be aware of the potential risks from cybercriminals and their competitors. These risks include malware, unauthorised access to the system or network, sabotage and other disruptions that could make M&A less valuable.
M&A can turn into a rewarding and profitable business experience when you have the right cybersecurity solutions. M&A is a great opportunity for businesses to create value and expand their global reach. To ensure that this value isn’t compromised, a focused cybersecurity strategy must be in place prior to when transactions are initiated. Download our free guide Cybersecurity for M&A – From the M&A Playbook to learn more. Todd Thiemann, director of product marketing at ReliaQuest GreyMatter is a Security Operations Platform which makes cybersecurity possible via M&A. It gives transparency, cuts through the complex security stacks that are heterogeneous, and manages risk and uncertainty to help your company achieve its goals.