Assessing Cybersecurity in M&A Diligence
Here’s why you should check a company’s overall cyber security health before acquiring it:
You could be doing a great job protecting your company.
But then, if you merge with a business with holes and attackers are already inside it, their problem becomes your problem.
So you need to build a rigorous methodology and a playbook to assess the security of your target during the M&A diligence.
Here’s how you can do it:
- Subjective questionnaire
Send questionnaires for the target company to fill out to know their standard of care.
- Objective KPIs
Then ask for objective data points on the company's cybersecurity hygiene.
For example, if the company says they do an amazing job patching their systems, but their data points indicate otherwise, it’s a great topic for a conversation.
- Security integration plan
You need to have a security integration plan before you acquire a company, and then you execute it after the acquisition.
This way, you don't start scratching your head after you acquire the company.
You know what you’re getting into and plan ahead of time for it.
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