Blog Cybersecurity Checklist for Mergers and Acquisitions
By Dmitry Tochilovsky / 27 Jan 2025 / Topics: Cybersecurity Data protection Zero Trust
By Dmitry Tochilovsky / 27 Jan 2025 / Topics: Cybersecurity Data protection Zero Trust
It is not uncommon for breaches to occur following an acquisition due to undiscovered vulnerabilities in the acquired company. Sometimes, these vulnerabilities are not discovered until years after the acquisition. This can result in disastrous outcomes for the parent company, including data privacy violations, penalties, and a damaged reputation.
To avoid this bad outcome, one key to a successful transaction is conducting a thorough M&A assessment. This evaluation uncovers critical aspects of the target company and positions the acquiring company to make well-informed decisions.
Let's delve into the value of an M&A assessment and how it can protect stakeholders. Performing cybersecurity due diligence during the M&A process is essential to safeguarding the security of the common entity, protecting the acquiring organization’s data and reputation, and making well-informed decisions. Plus, uncovering potential threats and vulnerabilities allows for a risk mitigation strategy and resolution.
The following checklist outlines necessary items to consider during M&A activity to evaluate the risks at hand.
After conducting the initial assessment and security control alignment, organizations can implement connectivity and data sharing. To ensure these processes are secure, acquiring companies should establish trusted zones for connectivity. These zones should permit only vetted resources from the acquired company and enforce Zero Trust principles, such as microsegmentation, least privilege access, and verified connections.
Following this checklist paves the way for more secure, less risky M&A activity. By prioritizing cybersecurity due diligence and making more informed decisions, organizations can lay the foundation for a more robust and resilient future state.
Sr. Security Architect, Insight
Dmitry has more than 20 years of experience in the IT industry, covering diverse roles in networking, system administration and security fields. He is passionate about all aspects of security with a strong focus on cloud security and Zero Trust architecture and strives to provide valuable security solutions to Insight's clients.