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Cybersecurity risks increase during mergers and acquisitions

Companies in California engaged in mergers and acquisitions always have many details to sort through to complete the transactions. Cybersecurity represents an issue that cannot be overlooked. A data breach could produce significant liabilities and drive down the asking price for a business. In addition to looking for a history of cyber attacks, a company must manage risks arising from inside threats and the difficulty of drawing together technological platforms.

Once a merger is in progress, employees might fear for their jobs, and their resentment could introduce cybersecurity threats. They might steal intellectual property or allow data breaches to occur. Tools meant to manage access to data and create clear data trails about activity could prevent attacks or neglect by internal workers. A strong training program that informs all employees about the importance of cybersecurity could defend company systems as well.

The concept of technology sprawl also introduces vulnerabilities even when employees are dedicated. Merging two companies usually means combining databases and networks for multiple operations in several locations. These systems might be protected by several different cybersecurity platforms that might overlap or leave gaps in protection. New software systems that deliver consistent coverage might need to be installed.

In addition to working with technical consultants to resolve these challenges, a company involved in a merger could seek legal advice. An attorney knowledgeable about mergers and acquisitions could guide the development of the contracts that govern the transaction. A merger will also require an analysis of various government regulations that need to be complied with.

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