As mergers and purchases (M&As) increase across the globe, cybersecurity is more important than ever. If sensitive information is accidentally divulged during M&A due-diligence or in post-M&A operations, the stakes are high.
The good news is the appropriate software can aid M&A CISOs in ensuring integrity of data, ensuring the compliance of the law, and reducing the risks that come with M&A activities. The best data room solution integrates digital tools into one integrated platform that allows easy uploads of files, single sign-on datarooms.in and comprehensive auditing. This helps compliance teams maintain control by making sure that they do not accidentally disclose information.
Virtual data rooms are a fantastic method of managing the M&A process, from due diligence through post-M&A integration and operations. VDRs allow authorized users to read and share sensitive documents without risk of leaks. They also allow users to create activity reports that show who has accessed and read specific document pages. These reports can stop criminals from leaking information because they can trace them back to the individual user. These reports also help M&A CISOs to assess the level of interest from potential investors or buyers.
Many M&A deals are based on the value of intellectual property. Life science companies, for instance utilize virtual data rooms to handle everything from clinical trial outcomes and HIPAA compliance to licensing IP as well as storage of patient records. During M&A due diligence, it is typical for companies to to submit and review large amounts of documents. This can be extremely time-consuming and labor intensive for both the business that is acquired and the acquirer. A VDR allows you to transfer all this information securely and efficiently.
M&A is a complicated business process that can pose significant security risks, regardless of the industry. During the integration and operations phases of the M&A cycle, the M&A team must be aware of the possible risks posed by cybercriminals and competitors. These risks could include malware, unauthorized access to networks and systems, sabotage, and other forms of disruption that can harm the M&A value proposition.
With the right M&A-focused security solutions in place, M&A can be a lucrative and enjoyable business experience. M&A is a great opportunity for businesses to create value and expand their global reach. To ensure that this value is not diminished, a cybersecurity-focused M&A strategy must be in place before any transactions begin. For more information get our free guide, Cybersecurity for M&A: From the M&A Playbook. Todd Thiemann is director of product marketing at ReliaQuest GreyMatter, a Security Operations Platform that can make cybersecurity a reality through M&A by providing visibility, cutting through the complexity of heterogeneous security platforms and minimizing the risk and uncertainty so that your company can reach its goals.