Caveat Emptor: Security Issues Key in M&A Deals

It's no secret that safeguarding business and customer data is a big concern for companies. In mergers and acquisitions (M&As) world, cyber-security is a hot button. With nearly 800 data breaches in the United State last year, according to Identity Theft Resource Center, coupled with the hefty cost of these attacks, acquirers are looking closely at cyber-security due diligence when they buy companies. The importance of cyber-security issues at M&A targets has increased greatly in the past two years, according to nearly 80 percent of North America-based senior M&A practitioners who responded to a survey commissioned by West Monroe Partners and conducted by MergerMarket. The report finds that as the need for cyber-security due diligence rises, deal makers are faced with roadblocks, ranging from the lack of employees with the right skill sets to conduct security analyses to a lack of thoroughness and the uncovering of problems after the deals close. Here are key takeaways from the survey that show where managed security service providers and other security solution providers can help ease the pain during cyber-security due diligence.