No doubt that cyber security is a key risk in business, but more specifically in mergers and acquisitions. Certainly, logic says that the larger and more diverse the entity, the more complicated the information technology environment will be, but so too will be the resources to adequately handle due diligence scrutiny. For small and medium sized businesses, cyber security risks in M&A are real, harder to handle, and potentially deadly to the deal. Working primarily with CEOs of smaller technology companies as I do, preparing for and dealing with cyber security issues in due diligence is as important as verifying executive backgrounds or accounts receivable. It is one of the key areas that can have numerous, hidden risks that can truly blow up your deal if found too late. Bottom line is that “an ounce of prevention is a pound of cure” in both daily operations and exit due diligence.
So with that in mind, I draw your attention to a very well written piece from the law firm of Freshfields Bruckhaus Deringer LLP entitled “Cyber Security in M&A”. It is about 15 pages that summarize the results of a survey they conducted on this area as well as some solid advice from the contributing partners. It is good reading and downloadable too.
- Buying In – Cybersecurity Risk and Due Diligence - April 17, 2018
- A Panel of CEOs Speaking About Exits to CEOs and Business Owners - March 28, 2018
- What Worries CEOs When They Exit - January 1, 2018
- Cyber Security Problems in M&A – Real, Not Imagined, and Hitting Hard - July 17, 2017
- Cyber Security Summits – Great Content; Deep Learning; Excellent Connections - May 26, 2017
- The CEO at Exit: Prepare; Talk; Listen; Empathize - May 5, 2017
- Be Prepared! Because “Startups get bought, not sold” - November 20, 2016
- Cyber Security Before, During and After Your Sale – Part II - October 7, 2016
- Cyber Security Before, During and After Your Sale – Part I - September 4, 2016
- You’re Invited! - June 28, 2016