As mergers and acquisitions (M&As) increase all over the world cybersecurity is more critical than ever. The stakes are high if confidential information is unwittingly disclosed to bad faith actors during M&A due diligence, or accidentally revealed during post-M&A integration and operations.
The good news is that the appropriate software can aid M&A CISOs in ensuring integrity of data, keeping the compliance of the law, and reducing the risks associated M&A activities. This includes the right data room solution that combines several digital tools into a single platform that is easy to use with uploads of data and single sign-on, and offers comprehensive auditing and reporting that aids compliance teams in maintaining control and avoid 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 allow authorized users to review and comment on sensitive documents without risk of leaks. They also let users create activity reports which show who has read or accessed specific pages of documents. These reports can discourage bad actors from leaking data since they can be traced back to individual users. These reports also let M&A CISOs assess the level interest from potential buyers or investors.
Many M&A transactions are based on intellectual property. Virtual data rooms are utilized by life science companies to handle everything from clinical trial results to HIPAA compliance, from licensing IP and keeping patient records. It is not uncommon for companies to https://datarooms.in/ be asked to review and supply massive volumes of documents as part of M&A due-diligence. This can be a lengthy and labor-intensive process for both the business being acquired and the buyer. A VDR allows you to share this information securely and efficiently.
Regardless of the industry, M&A can be a complicated business process that can be a significant security risk. In the integration and operation phases of the M&A cycle The M&A team must be aware of the potential threats of cybercriminals as well as competitors. These risks can include malware, unauthorized network and system access as well as sabotage and other disruptions that could make M&A less valuable.
With the right M&A-focused security solutions in place, M&A can be a lucrative and rewarding business experience. M&A provides businesses with an excellent opportunity to expand their global footprint and create value. To ensure that this value is not diminished, a cybersecurity-focused M&A strategy must be in place prior to any transactions are initiated. For more information get our free guide, Cybersecurity for M&A from the M&A Playbook. Todd Thiemann is director of marketing for the product of ReliaQuest GreyMatter, a Security Operations Platform that helps to make cybersecurity possible through M&A by delivering transparency, removing the complexity of heterogeneous security platforms and minimizing risk and uncertainty so your company can achieve its goals.