In today’s fast-paced digital world, mergers and acquisitions (M&A) are more than just financial transactions, they’re data-driven endeavors that hinge on trust, compliance, and operational continuity. Amid the flurry of valuations, due diligence, and integration planning, one essential factor often gets sidelined: information security.
Yet, neglecting security during an acquisition can turn a strategic growth opportunity into a high-stakes liability.
The Overlooked Risk
Cybersecurity risks are often underestimated during M&A. Whether it’s a small startup or a large enterprise, every company has its own digital footprint including things such as systems, data, users, and vulnerabilities. Acquiring a business without a comprehensive understanding of its cybersecurity posture can expose the buyer to:
- Security breaches that may already be underway (Think of SPG and Marriott).
- Regulatory violations (e.g., GDPR, HIPAA, CCPA)
- Intellectual property theft (People love to leave when they have a huge cash windfall from the stock surging).
- Undisclosed ransomware or malware infections (Did you make sure they have EDR?)
- Legacy system vulnerabilities incompatible with your infrastructure (Older companies may have older systems, just like newer companies may have an older system sitting in the corner.)
In 2017, Verizon famously negotiated a $350 million discount off its Yahoo acquisition after discovering massive, previously undisclosed data breaches. The message is clear: cybersecurity impacts business value.
Why You Need Information Security in Every M&A Phase
- Due Diligence. Information security should be a core part of due diligence. That means scanning for vulnerabilities, reviewing compliance documentation, and auditing data access controls. This phase is your chance to uncover hidden risks.
- Integration Planning. Merging networks and systems requires careful planning. Poorly integrated IT environments can open doors for cyberattacks. Clear visibility into both entities’ cybersecurity frameworks is essential.
- Post-Merger Monitoring. Even after the ink is dry, threats don’t go away. Continuous security monitoring ensures that no dormant malware, insider threats, or configuration issues jeopardize your newly formed organization.
- Reputation Management. A single breach tied to an acquired company can damage brand trust. Strong information security practices safeguard not just your systems, but your reputation and customer loyalty.
How Gilliam Security Can Help
At Gilliam Security, we specialize in securing the unseen. Our dedicated M&A cybersecurity team ensures that your acquisition is not only smart but safe. We offer:
- Pre-acquisition security assessments;
- Deep-dive audits on cyber risk and compliance;
- Threat intelligence on the target company’s digital footprint;
- Seamless post-acquisition integration and monitoring; and,
- Custom playbooks to respond to emerging threats.
Whether you’re acquiring a tech startup or consolidating with a large enterprise, Gilliam Security brings clarity, protection, and confidence to your deal.
Don’t let cyber risks derail your next big move. Partner with Gilliam Security and acquire with confidence.