Companies hoping to be acquired better beef up their cybersecurity, according to a report from Forescout Technologies. The device visibility and control company released a report this week after surveying more than 2,700 IT and business decision makers around the world to assess how cybersecurity factors into M&A.
According to the survey, 53% report their organization has encountered a critical cybersecurity issue or incident during a M&A deal that put the deal into jeopardy. Cybersecurity concerns discovered after consummation of the deal often present costly risks that would have been factored into the deal negotiations and/or may have led to the dissolution of the deal. After closing the acquisition, 65% experienced buyers’ remorse, regretting the deal due to cybersecurity concerns.
“M&A activity can be a game-changing moment in a company’s history, but recent breaches shine the spotlight on cybersecurity issues and make one thing abundantly clear: you don’t just acquire a company, but you also acquire its cybersecurity posture and a potential trojan horse.”
“M&A activity can be a game-changing moment in a company’s history, but recent breaches shine the spotlight on cybersecurity issues and make one thing abundantly clear: you don’t just acquire a company, but you also acquire its cybersecurity posture and a potential trojan horse,” said Julie Cullivan, chief technology and people officer, Forescout.
“Acquiring a company without proper cybersecurity due diligence is like buying a used car and taking the seller’s word it is in good condition,” said Joe Cardamone, senior information security analyst and NA privacy officer, Haworth. “A company should not automatically trust the hygiene of IT assets. It’s critical to have full visibility into all connected devices and determine whether they are patched, configured properly, and free of malware.”
