As mergers and purchases (M&As) increase around the world, cybersecurity is more important than ever before. If confidential information is disclosed during M&A due-diligence, or during post-M&A transactions, the stakes are high.
The good news is that the appropriate software can aid M&A CIOs in ensuring the integrity of data, maintaining the compliance of the law, and reducing the risks that come with M&A activities. The right data room solution integrates digital tools into an integrated platform that enables easy uploads of files, single sign-on and comprehensive auditing. This assists compliance teams in maintaining control by making sure that they do not accidentally disclose information.
Virtual data rooms are a fantastic way to manage the M&A process from due diligence to post-M&A integration and operations. VDRs enable authorized users to review and comment on sensitive documents with no risk of leaks. They also provide the ability to datarooms.in create activity reports that reveal who has read and accessed specific document pages. These reports can stop those who leak data from being caught since they can be traced back to individual users. These reports also let M&A CISOs to evaluate the level of interest from potential buyers or investors.
Many M&A transactions are based on intellectual property. Virtual data rooms are used by life science companies to manage everything, from clinical trial results to HIPAA compliance, to licensing IP and keeping patient records. During M&A due diligence, it is typical for companies to to submit and review large amounts of documents. This can be a labor-intensive and time-consuming process for both the company 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, irrespective of the industry. The M&A team must be aware of the risk posed by competitors, cybercriminals and disgruntled employees during the operational and integration phases of the M&A lifecycle. These risks could include malware, unauthorised access to systems and networks as well as sabotage and other types of disruption that could affect the M&A value offer.
With the right cybersecurity solutions in place M&A can be a profitable and enjoyable business experience. M&A is a great opportunity for businesses to add value and expand their reach globally. Before any transaction can begin, a M&A focused cybersecurity strategy should be implemented to ensure the value of the deal is not compromised. Download our free guide on 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 that makes cybersecurity possible via M&A. It delivers visibility, cuts through the complex security stacks that are heterogeneous, and helps manage risk and uncertainty to help your business reach its goals.