Secure Business M&A With Software For Secure Business M&A
As mergers and acquisitions (M&A) grow all over the world security is more important than ever for businesses. The stakes are high when confidential information is accidentally disclosed to bad faith actors during M&A due diligence, or is accidentally revealed in post-M&A integration and operations.
The good news is that the right software can assist M&A CISOs ensure the accuracy of data, ensure the compliance of their organization, and help protect against the risk associated with M&A activities. The best data room solution brings together digital tools into one integrated platform that allows for easy file uploads, single sign-on, and a thorough auditing. This assists compliance teams to maintain control by stopping accidental disclosure.
Virtual data rooms are an excellent tool for managing the M&A processes from due diligence through post-M&A operations and integration. VDRs permit authorized users to easily review or share and comment on sensitive documents without risk of leakage. They also permit users to create activity reports that reveal who has accessed or read specific pages of documents. These reports can stop bad actors from leaking information since they can be traced to specific users. They also permit M&A CISOs to evaluate the level of interest from potential buyers or investors.
Many M&A transactions are dependent on 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 storage of patient files. It is not uncommon for companies to be required to review and supply large volumes of documents during M&A due-diligence. This can be extremely time-consuming and labor intensive for both the business being acquired and the buyer. A VDR lets you transfer all this information securely and efficiently.
M&A is a complicated business process that can pose significant security risks, no matter the industry. The M&A team needs to understand the potential threat posed by competitors, cybercriminals and disgruntled employees during the operations and integration phases of the M&A lifecycle. These risks can include malware, unauthorized access to the system or network, sabotage and other disruptions that can undermine M&A’s value proposition.
With the right cybersecurity solutions in place, M&A can be a profitable and enjoyable business experience. M&A gives businesses an opportunity to expand their footprint and add value. To ensure that this value is not diminished, a cybersecurity-focused M&A strategy should be in place prior to any transactions are initiated. 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 can make cybersecurity a reality through M&A and provides transparency, reducing the complexity of heterogenous security stacks and reducing risk and uncertainty so that your company can reach its goals.