As mergers and purchases (M&As) increase all over the world, cybersecurity is more important than ever. If confidential information is accidentally disclosed during M&A due-diligence or in post-M&A processes, the risks are high.
The good news is the right software can help M&A CISOs in ensuring integrity of data, maintaining compliance, and protecting against the risks that come with M&A activities. This includes a data room software that integrates several digital tools into a single integrated platform with easy uploads of files and single sign-on. It also provides comprehensive auditing and reports that aids compliance teams in maintaining control and prevent accidental disclosure.
Virtual data rooms are a fantastic method of managing the M&A process from due diligence to post-M&A integration and operations. VDRs allow authorized users to review and comment on sensitive documents without fear of leaks. They also permit users to create activity reports which show who has read or accessed specific pages of documents. These reports can stop those who leak data from being caught since they can be traced back to the individual user. These reports also let M&A CISOs to assess the level of interest from potential buyers or investors.
Many M&A transactions are dependent on intellectual property. Virtual data rooms are used by life science companies to handle everything from clinical trials to HIPAA compliance, to licensing IP and keeping 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 time-consuming and labor intensive for both the company being acquired and the acquirer. A VDR lets you share this information safely and efficiently.
Whatever the field, M&A can be a complicated business process that can create significant security risks. In the integration and operation phases of the M&A cycle, the M&A team must understand the potential risks that cybercriminals and rivals pose. These risks include malware, unauthorised online data room network and system access, sabotage and other disruptions that can affect the value proposition of M&A.
With the right cybersecurity solutions in place, M&A can be a lucrative and rewarding business experience. M&A provides businesses with an excellent opportunity to expand their footprint and add value. To ensure that this value is not affected, a specific cybersecurity strategy must be in place before any transactions are initiated. For more information, download our free guide, Cybersecurity for M&A from the M&A Playbook. Todd Thiemann, director of product marketing at ReliaQuest GreyMatter is a Security Operations Platform that allows cybersecurity to be achieved through M&A. It gives transparency, cuts through the complexity heterogeneous security stacks, and manages risk and uncertainty to help your business achieve its goals.