In the intricate landscape of mergers and acquisitions (M&A), security is often overlooked until it’s too late. When businesses combine, they don’t just merge their strengths—they also inherit each other’s risks and vulnerabilities. Neglecting security during this critical time can lead to severe consequences, from data breaches to long-term operational setbacks. Below are five essential lessons to help ensure your M&A process is secure and smooth.
1. Bring Security to the Table Early
One of the most crucial insights from past M&A experiences is the need to involve security teams from the outset. Security professionals should be integral to the initial discussions, helping to identify and mitigate potential risks before they escalate. When security is considered an afterthought, it often leads to reactive measures that are more costly and less effective.
2. Don’t Cut Corners on Due Diligence
Due diligence is more than just a box-checking exercise—it’s a thorough investigation that should include a deep dive into the target company’s security posture. This means evaluating their policies, reviewing past incidents, and understanding their current vulnerabilities. Skimping on this process can result in acquiring significant, avoidable risks.
3. Prioritize Early Transition Planning
The transition phase is where many security challenges emerge. If the target company has unresolved security issues, these problems can become your own. By starting the transition planning early, you can develop strategies to manage and mitigate these risks.
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Avoid Inheriting Unresolved Issues: Ensure that any existing security problems in the target company are addressed before they impact your organization.
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Mitigate Risks of Legacy Environments: Connecting to legacy systems can increase your attack surface. Implement strong controls to manage this expanded risk.
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Collaborate Without Delay: IT teams often drive the transition, so collaboration is key. Balance security concerns with the need to move quickly, closing security gaps as soon as possible without slowing down the overall process.
4. Remember: Due Diligence is Just the Beginning
The discovery of risks doesn’t end with due diligence. As you move through the acquisition and integration phases, new threats may emerge. Stay vigilant and ready to address these challenges as they arise to ensure ongoing security.
5. Retire Legacy Systems Promptly
Keeping outdated systems around longer than necessary only increases your exposure to risk. The quicker you can decommission legacy environments, the more streamlined and secure your operations will be. Reducing your attack surface and simplifying security management should be a priority.
Conclusion
Mergers and acquisitions are complex and fraught with potential security pitfalls. By integrating security early, conducting thorough due diligence, planning the transition carefully, staying alert to new risks, and retiring outdated systems quickly, you can protect your organization and set the foundation for a successful merger. Security isn’t just about protecting assets—it’s about ensuring the newly combined entity thrives.
