Cyber risks are now a central concern in M&A. We dive into the technical, legal, and reputational factors at play — and how to conduct meaningful cybersecurity diligence that protects enterprise value.
Cyber risk is no longer just an IT issue — it’s a core component of deal value. As regulatory scrutiny rises and cyber incidents become more frequent and costly, buyers can’t afford to overlook cybersecurity in M&A.
1. Identifying Inherited Risk
Every deal carries hidden cyber exposures — outdated systems, poor access controls, lack of monitoring. A comprehensive scan during diligence helps avoid taking on legacy vulnerabilities.
2. Data Governance and Privacy Gaps
Buyers must assess how well the target complies with data privacy regulations (e.g., GDPR, CCPA). Weak data handling practices can trigger legal liability and erode customer trust.
3. Threat Detection and Incident History
Understanding a target’s breach history, detection capabilities, and incident response maturity is critical. Has the company been breached? How quickly did it respond?
4. Integration Risk Assessment
Even if the target is secure, post-deal integration can expose gaps. System migrations, user access alignment, and unified security protocols should be planned from Day 1.
5. The Role of the Board
Cyber is now a board-level issue. Investors and executives are demanding greater visibility, accountability, and assurance that cybersecurity is embedded into diligence and beyond.
At Creston Advisory, we bring cybersecurity into the M&A spotlight — ensuring it’s treated as a value enabler, not an afterthought.
