As mergers and purchases (M&As) increase all over the world, cybersecurity is more important than ever. If confidential information is revealed during M&A due diligence or in post-M&A operations, the stakes are high.
The good news is that the right software can assist M&A CISOs in ensuring integrity of data, keeping the compliance of the law, and reducing the risks associated with M&A activities. This includes the right data room software that integrates various digital tools into a single integrated platform, with simple file uploads and single sign-on, and offers complete auditing and reporting that helps compliance teams maintain the control over their information and prevent accidental disclosure.
Virtual data rooms are an excellent tool for managing the M&A processes from due diligence to post-M&A processes and integration. VDRs allow authorized users to easily review or share and comment on sensitive documents with no risk of leakage. They also allow users to create activity reports, which reveal who has accessed or read specific pages of documents. These reports can discourage people who are leaking data because they can trace them back to individual users. These reports also help M&A CISOs evaluate the level interest from potential investors or buyers.
Many M&A transactions are founded on intellectual property. Life science companies, for instance 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 uncommon for companies to be required to review and supply huge volumes of documentation during M&A due-diligence. This can be extremely labour-intensive and time-consuming for both the company that is acquired and the acquirer. A VDR allows you to share all this information securely and efficiently.
Whatever the field, M&A can be a complex business process that could pose significant security risks. The M&A team must be aware of the potential threat posed by cybercriminals, competitors and disgruntled employees during the operational and integration phases of the M&A lifecycle. These risks include malware, unauthorised network and system access or sabotage as well as other disruptions that could make M&A less valuable.
M&A can be an enjoyable and profitable business experience with the best cybersecurity solutions. M&A is a great opportunity for businesses to add value and expand their global reach. Before any transaction can datarooms.in take place, a M&A specific cybersecurity strategy must be implemented to ensure that the value of this deal is not compromised. Download our free guide 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 multiple security stacks, and reducing the risk and uncertainty so that your company can achieve its goals.
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