As mergers and acquisitions (M&As) increase around the world cybersecurity is more critical than ever before. The stakes are high should confidential information be accidentally disclosed to bad faith actors during M&A due diligence, or accidentally exposed in the post-M&A process of integration and operations.
The good news is that the appropriate software can assist M&A CISOs ensure the accuracy of their data, ensure compliance, and guard against the dangers associated with M&A activities. This includes the right data room solution that combines several digital tools into a single integrated platform, with simple file uploads and single sign-on. It also provides complete auditing and reporting that help compliance teams keep the control over their information and prevent accidental disclosure.
Virtual data rooms can be an effective tool to manage the M&A processes, from due diligence to post-M&A operations and integration. VDRs allow authorized users to quickly review and share comments on sensitive documents, without risk of leakage. They also allow users to create activity reports that reveal who has accessed and read specific pages of documents. These reports can deter bad actors from leaking information, since they can be traced back to individual users. They also permit M&A CISOs to evaluate the level of interest from potential investors or buyers.
Many M&A transactions are based on intellectual property. Virtual data rooms are employed by life science companies to manage everything, from clinical trial results to HIPAA compliance, to licensing IP to storage of patient data. When it comes to M&A due diligence, it is common for companies to to submit and review large amounts of documents. This can be a very time-consuming and labor-intensive process for both the company that is acquired and the buyer. A VDR allows you to share this information safely and efficiently.
No matter what industry, M&A can be a complicated business process that can present significant security risks. The M&A team needs to https://datarooms.in/ be aware of the risk posed by competitors, cybercriminals and disgruntled employees during the operational and integration phases of the M&A lifecycle. The risks could include malware, unauthorised access to systems and networks, sabotage, and other disruptions that can make M&A less valuable.
With the right cybersecurity solutions in place M&A can be a profitable and enjoyable business experience. M&A offers businesses a great opportunity to expand their global footprint and create value. To ensure that this value is not compromised, a focused cybersecurity 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 marketing for the product of ReliaQuest GreyMatter, a Security Operations Platform that can make cybersecurity a reality through M&A, delivering transparency, reducing the complexity of heterogenous security stacks and managing the risk and uncertainty so that your business can meet its goals.