Businesses of all kinds are vulnerable to cyber attacks. Lloyd’s estimated that businesses lose up to $400 billion per year due to data breaches. With the recent growth in mergers and acquisitions activity — 2015 was the biggest year for M&A ever, according to the Wall Street Journal — deal activity is drawing the attention of cyber criminals. Although there was always the risk of deal information leaking, now that documents are shared electronically, the possibility of unauthorized access to documents is greatly increased.
The damage from a successful cyber attack during M&A can cost the parties involved in a deal millions of dollars, damage a rm’s public image and lead to litigation. Protecting sensitive data during M&A is critical, but many firms don’t recognize the risks of data exposure and don’t implement sufficient data security measures.