Mitigating M&A cyber risk: pre- & post-acquisition due diligence

January 31, 2024
Data infecting a finger print identity on a screen to illustrate hacking and cyber crime

Robust cybersecurity and due diligence on a potential target are imperative in the face of escalating cyber threats and regulatory expectations. Comprehensive pre- and post-acquisition due diligence help safeguard the buyer’s investment by identifying and mitigating information security risks associated with the transaction. This includes defining and implementing minimum standards for an acquisition not immediately integrated.

Why M&A cybersecurity due diligence?

  1. Serves as a crucial risk mitigation tool to uncover undisclosed breaches and better assess the time and cost required to bring target up to defined information security standards.
  2. Provides leverage in negotiations for purchase price adjustments and additional representations/warranties by the seller.
  3. Identifies ways to reduce insider threats, stemming from potential job security concerns of target’s employees.
  4. Positions the buyer to capitalize on the Self-Disclosure Compliance Safe Harbor Policy from the US Department of Justice.
  5. Reduces regulatory and third-party litigation exposure to the buyer, as well as whistleblower risk.

Read the full infographic here.

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