Cybersecurity for Mergers,
Acquisitions and Divestitures

 

Manage Cyber Risks Throughout the MA&D Lifecycle

A Global Uptick in MA&D Transactions = Greater Need for Cybersecurity

If digital transformation (DX) was making waves in business and technology before 2020, COVID-19 unleashed a global tsunami of corporate change. To stay competitive, companies were forced to adapt quickly, and where they landed after the pandemic’s economic shakeup spans the full spectrum of fortune – from gangbuster profits to dire straits. As companies find their respective footing in a post-pandemic world, deals are being made.  

 

From technology to healthcare to retail – global merger, acquisition and divestiture (MA&D) transactions are on the rise between businesses facing foreseeable consolidation and those seeking deals to secure their futures. For the latter, having a process in place to secure and protect transactions from start to finish could mean the difference between prosperity and significant loss.

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Cyber Risks in Mergers and Acquisitions     

If target companies are vulnerable to security breaches, then acquiring organizations can get more than they bargained for. Understanding potential risks involved with the MA&D process is the first step in preventing major blows to finances and reputation.

 

Common Cybersecurity Challenges Throughout the MA&D Process

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Unpatched systems and IT assets

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Unsecure endpoints and network traffic transiting

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Legal and regulatory risks in the target company

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Inadvertent loss of IP/exposure of critical assets

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Inadequate data discovery and management

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Estimated costs to remediate cyber vulnerabilities

Assess and Mitigate Cybersecurity Risks During Mergers and Acquisitions

Cybersecurity Due Diligence, From Pre- to Post-Deal

 

Optiv understands that identifying and mitigating cyber risks can be daunting when navigating the unknown waters of a target company. That’s why our MA&D team helps organizations develop custom-fit cybersecurity programs to ferry them through the whole transaction process with confidence and consistency.

 

 

Breaking Down the Cybersecurity Lifecycle for Mergers, Acquisitions and Divestitures

 

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Step 1: Readiness

 

Our pre-deal prep begins with defining the MA&D strategy. To start, we’ll identify and prioritize potential targets and then build you a customized cybersecurity playbook.

Step 2: Due Diligence

 

Next, we painstakingly screen and analyze the target organization’s financial, security and organizational health. Beyond eliminating any surprises that could come back to bite you down the road, conducting due diligence helps you make the best decisions possible before putting the proverbial pen to paper.

Step 3: Execution

 

With a complete pulse on the target organization, it’s time to negotiate the terms of the deal, sign it and then begin preparations for a seamless hand-off from day one.

Step 4: Transition

 

Post-deal, we’ll support a seamless business and IT changeover with integration or separation plans, as well as ongoing implementations to match them.

The Outcome 

 

Providing Tailored Transactional Support From End to End

 

We understand that the cybersecurity challenges around MA&D decisions are wildly different for each organization, and that’s why we approach every deal on the table with singular solutions. 

 

When enlisted by a Fortune 500 technology leader to assist with divestiture, for instance, we put our expertise into action with bespoke cybersecurity support. From the pre-deal period to the successful divestment, we deployed our divestiture playbook to ensure a secure and smooth migration of the target company from the parent organization.
 

Why Choose Optiv to Develop Your M&A Cybersecurity Strategy

 

We combine public and private industry expertise with more than 10 years of average experience per team member, so managing cybersecurity is our forte. When it comes to the MA&D lifecycle, our teams have developed tried and true accelerators to perfect the process.

 

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When we pull out the cybersecurity MA&D playbook, you’ll get a tailored framework of security capability requirements across the spectrum of cyber realms to move the ball forward during each quarter of the MA&D lifecycle

 

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We provide MA&D tracking and reporting templates, such as risk register, service request tracker and 30/60/90-day roadmaps, as tactical and strategic tools to guide you from early stages to post-close support 

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Our cybersecurity blueprint maps current security capabilities, identifies potential gaps and formulates a detailed plan of action to address them 

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Our industry threat profiles analyze emerging threats in your industry to help mitigate cyber attacks