Mergers & Acquisitions – The Growing Importance Of Cybersecurity!
Cybersecurity – More and more companies have been forced to consider it a priority, primarily because breaches, data hacks and lapses are more common than ever before. For mergers and acquisitions, both parties need to evaluate the other with regards to cybersecurity, because it impacts value, reputation, and could have other implications, including legal ones. For a company that’s absorbing another, cyber due diligence is a critical aspect to consider, because it helps in determining if the smaller company has been keeping up with IT security needs. In case things seem odd, further cyber forensics can be considered for investigation.
Companies like Elijaht cyber forensics, specialize in both due diligence and forensics, and in this post, we take a look at why brands need to more concerned about both.
The lack of transparency
IT security requires a more proactive stance towards various concerns. In a merger, or acquisition, it is often hard to decode if a company has been aware and smart about the digital technologies they have been using. If they didn’t have proper security coverage, chances are high that there have been breaches and lapses, which the company is probably not even aware of. To add to that, cybercrimes and security lapses are often masked, and the company that’s absorbing the enterprise has to bear the liabilities. A case in point being Verizon’s acquisition of Yahoo, where a breach at Yahoo devalued the amount by a massive $350M. Similarly, there could be other issues related to malware, spyware and data contamination.
Since mergers and acquisitions involve two companies becoming one, their IT structure and work culture also works together. Cybersecurity due diligence in such cases offers an unbiased, professional overview of the entire digital landscape for a given company. It may also mean looking into the allegations and using cyber forensics to prove a certain thing. The process is time-consuming, often outsourced, but is critical for facilitating a merger. It is also a great way to look into the actual process or the kind of stance a company had towards IT security.
Cybersecurity due diligence is not a choice anymore for M&A situations. It is what companies are choosing to invest in, and the good news is the range of assistance one can get for the job. There are services that deal in every aspect of cyber forensics and due diligence, working within a time frame and offering comprehensive reports that will hold value to respective parties.