The Role of Data Security in Mergers & Acquisitions
Mergers and acquisitions (M&A) are among the most significant business activities that shape the corporate landscape. These processes often involve the transfer of vast amounts of sensitive data from intellectual property and employee records to customer databases and financial documentation. In today’s digital age, where cyber threats are becoming increasingly sophisticated, data security plays a critical role in the success of M&A transactions. Why Data Security is Crucial in M&A When two companies merge or one acquires another, they must evaluate not only financial and operational compatibility but also cybersecurity posture. A target company’s poor data security practices can lead to breaches, legal issues, and reputational damage ultimately impacting the valuation and success of the deal. That’s why cyber risk assessments are now standard procedures in the M&A process. Cyber due diligence identifies existing vulnerabilities, historical breaches, and compliance risk...