As mergers and acquisitions (M&A) grow across the globe cybersecurity is more crucial than ever for companies. The stakes are high should confidential information be accidentally divulged to bad actors during M&A due diligence, or accidentally exposed during post-M&A integration and operations.
The good news is the right software can help M&A CIOs in ensuring the integrity of data, ensuring compliance, and protecting against the risks that come with M&A activities. The ideal data room software integrates digital tools into an integrated platform that allows for simple file uploads, one sign-on, and a complete auditing. This helps compliance teams keep control by making sure that they do not accidentally disclose information.
Virtual data rooms can be a wonderful way to manage the M&A process from due diligence to post-M&A integration and operations. VDRs permit users with access to read comments, share, and even comment on sensitive documents, without risk of leakage. They also allow users to create activity reports that show who has accessed and read specific pages of documents. These reports can discourage bad actors from leaking data since they can be traced back to individual users. They also allow M&A CISOs evaluate the level of interest from potential buyers or investors.
Many M&A deals are built around the value of intellectual property. Life science companies, for example utilize virtual data rooms to handle everything from clinical trials’ results and HIPAA compliance to licensing IP and storage of patient records. It is not unusual for companies to be asked to review and provide large volumes of documents during M&A due-diligence. This can be a very time-consuming and labor-intensive process for both the business being purchased and the buyer. A VDR allows you to share this information securely and efficiently.
Whatever the field, M&A can be a complex business process that may be a significant security risk. During the integration and operations phases of the M&A cycle the M&A team must understand the potential threats that cybercriminals and rivals pose. These risks can include malware, unauthorised network and system access, sabotage, and other disruptions that could make M&A less valuable.
With the datarooms.in right cybersecurity solutions in place M&A can be a profitable and rewarding business experience. M&A provides businesses with an excellent opportunity to expand their footprint and increase their value. To ensure that this value is not compromised, a focused cybersecurity strategy must 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 makes cybersecurity possible through M&A by providing transparency, reducing the complexity of heterogeneous security stacks, and reducing the risk and uncertainty so that your company can reach its goals.
