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M&A Cybersecurity: Don’t Let Security Gaps Sink Your Deal
Mergers and Acquisitions (M&A) are exciting growth opportunities.
However, cyber threats can lurk beneath the surface, jeopardizing the success of your transaction. Integrating two companies often means merging complex IT systems, exposing vulnerabilities that hackers can exploit.
Here’s why cybersecurity due diligence is crucial for M&A success:
-> Hidden Vulnerabilities: Legacy systems or outdated security practices in the target company can create unknown security gaps.
-> Data Breach Risks: M&A activity can disrupt security protocols, increasing the risk of data breaches that can damage both companies’ reputations.
-> Compliance Challenges: Integrating systems can complicate compliance with industry regulations.
-> Post-Merger Integration Risks: Rushing integration can lead to overlooking critical security measures, exposing the combined entity.
-> Hackers may have identified a possible transaction and stayed dormant on the acquired company system, waiting for the IT systems integration and moving to their ultimate target.
Cykur Can Help You Navigate M&A Cybersecurity:
Pre-Merger Due Diligence:
-> Cybersecurity Risk Assessment: We identify and analyze potential security risks within the target company’s IT infrastructure, data practices, and security posture.
-> Data Breach Vulnerability Assessment: We evaluate the target’s data security controls and identify potential breach points.
-> Compliance Gap Analysis: We assess the target’s adherence to relevant industry regulations and highlight any compliance gaps that need addressing post-merger.
Post-Merger Integration:
-> Security Integration Strategy: We develop a comprehensive plan for securely integrating the IT systems of both companies, minimizing disruption and maintaining a strong security posture.
-> Security Awareness Training: We ensure all employees are aware of the new security protocols and best practices for the combined entity.
-> Security Planning Integration: We provide a review and a revised common Incident Response Plan and cyber-related processes and procedures of the merged environment to identify and mitigate potential cyber threats within the new entity.
Benefits of Partnering with Cykur:
-> M&A Expertise: We understand the unique cybersecurity challenges associated with M&A transactions.
-> Reduced Risk & Improved Deal Value: Minimize security risks and protect the value of your M&A deal.
-> Faster & Smoother Integration: Help ensure a secure and efficient integration process for your IT systems.
-> Enhanced Compliance: Navigate compliance complexities and achieve compliance with industry regulations.
Don’t Let Cybersecurity Derail Your M&A Success:
Contact us today and learn how our pre- and post-merger cybersecurity services can help you navigate through the complexities of M&A deals and emerge stronger on the other side.
Back in November 2021, the FBI issued a Private Industry Notification:
Ransomware threat actors are now specifically researching publicly available information to identify their next merger and acquisition targets.
They are leveraging the deal’s time-sensitive aspect to pressure their victims into paying quickly. In a push to avoid leaking information to the public, which could jeopardize the deal.
The period before any acquisition or merger is sensitive for companies. For most larger transactions requiring a filing with the Federal Trade Commission, both the buyer and the seller must file forms and provide data about the industry and their businesses.
By law, all information in a merger investigation is confidential, with very strict rules against disclosure.
Even smaller deals that do not require an FTC review involve an exchange of sensitive, classified information about both parties that, if disclosed, could disrupt the deal or result in a competitive impact.