March 13, 2018
Cyberattacks on companies can do more than violate laws and regulations. A business that is being acquired or generally exploring a sale typically wants a maximum return, and the acquirer wants to make sure its target is valued appropriately and is a sustainable asset. Insufficient investment in cybersecurity and digital infections can hamper or even kill those goals by reducing the value of the target’s assets, damaging its brand and derailing its growth prospects.
Once a transaction comes into focus and an acquirer wants to determine the target’s real value, it needs to address two key areas: security and synergy. Security includes the history of cyber events, the controls in place and the assets at risk in a connected environment. Synergy involves determining how different the target’s systems and protocols are from the acquirer.
So what are the next steps for dealmakers? Learn more about cyber due diligence and the road to reducing threats in our latest piece, When cyber threatens M&A.