Add comprehensive cybersecurity to your due diligence so your acquisition doesn’t go down the drain.
In an M&A deal, due diligence seeks to provide both parties with an assurance that there are no material gaps in the information available to each party about the other as well as acknowledging what is not known at all.
Cybersecurity has recently become a component in due diligence as the value of the target company may rely heavily on their use of information technology systems and the use of and access to information assets. In this nascent field, assessing the cybersecurity program of the target has become a more common practice.
Cybersecurity due diligence today only addresses the condition of the network, not whether an attacker has a foothold in it. As recent events demonstrate, due diligence around cybersecurity is quickly becoming a focal point of the negotiations before an acquisition.
Purchasers who analyze risks involved in terms of the financial losses anticipated can protect their investment through better terms.
Measure cybersecurity risk to ensure you’ve done what you can to protect your investment against future losses.