{"id":3347,"date":"2024-05-01T09:00:00","date_gmt":"2024-05-01T14:00:00","guid":{"rendered":"https:\/\/www.darkreading.com\/cyber-risk\/cybersecurity-checklist-that-could-save-your-m-and-a-deal"},"modified":"2024-05-01T09:00:00","modified_gmt":"2024-05-01T14:00:00","slug":"the-cybersecurity-checklist-that-could-save-your-ma-deal","status":"publish","type":"post","link":"https:\/\/ddi.mohflo.net\/index.php\/2024\/05\/01\/the-cybersecurity-checklist-that-could-save-your-ma-deal\/","title":{"rendered":"The Cybersecurity Checklist That Could Save Your M&A Deal"},"content":{"rendered":"
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COMMENTARY<\/span><\/span><\/p>\n

Mergers and acquisitions (M&A) activity is making a much-anticipated comeback, soaring in the US by 130% \u2014 to the tune of $288 billion. Around the world, M&As are up 56%, to $453 billion, according to <\/span>data from Dealogic<\/a><\/span>.<\/span><\/p>\n

When two companies are combined, a vast amount of sensitive data and information is exchanged between them, including financial records, customer information, and intellectual property. Additionally, different types of software and hardware often need to be integrated, which can create security vulnerabilities for cybercriminals to exploit.<\/span><\/p>\n

Cybersecurity is critical to protect and safeguard the integrity of confidential data and can make or break an M&A deal. Having worked across a range of industries in my career, from banking and finance to healthcare, technology, and government, I’ve witnessed firsthand the <\/span>cybersecurity challenges associated with managing M&As<\/a><\/span>. Each M&A transaction I’ve been involved with has been far more complex than initially envisioned and took longer than anticipated to complete. This is especially true when it comes to integrating the technology stack.<\/span><\/p>\n

Understanding Cybersecurity in M&A<\/h2>\n

Merging with or acquiring a company with a poor cybersecurity posture makes it much easier for cybercriminals to launch an attack. A data breach not only carries severe financial consequences, including legal fees and financial penalties, it also can be extremely damaging to an organization’s reputation.<\/span><\/p>\n

Without effective prevention and mitigation of cyber-risks, organizations could lose the trust of customers, partners, and investors, jeopardizing the deal. This is why cybersecurity must be a key consideration right from the beginning of the M&A lifecycle \u2014 not after it has happened. Regulators are also ramping up scrutiny of M&A deals and issuing significant fines for non-compliance. In many states and countries, rules such as the EU’s General Data Protection Regulation (GDPR) protect personal data when it is transferred between entities.<\/span><\/p>\n

M&A Cybersecurity Checklist<\/h2>\n

Leveraging more than 25 years of experience in risk, governance, and cybersecurity, I’ve put together this checklist to help organizations safeguard their digital assets before, during, and after a merger and acquisition:<\/span><\/p>\n

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