BitSight Security Ratings for Mergers and Acquisitions

BitSight Security Ratings for Mergers and Acquisitions enable organizations to measure the cybersecurity performance of potential acquisition targets or portfolio companies.

Companies have insight into financial, legal and other risks during the due diligence process, but are oftentimes left in the dark when it comes to cyber risks. A survey conducted by law firm Freshfields Bruckhaus Deringer found that 90% of people believed that cyber breaches could reduce the value of a potential acquisition.

While questionnaires and penetration tests can provide one level of insight into security practices, these methods are time consuming and reflect only a “snapshot in time” view. Without a quantified baseline, continuous measurement, and comparative data, companies are limited in their ability to measure the impact of risk mitigation efforts at potential acquisitions. In order to proactively identify and mitigate risk, companies need automated tools that continuously and objectively measure and monitor the security of potential acquisitions and current investments.

BitSight Security Ratings for Mergers and Acquisitions deliver timely, data-driven analyses of a company’s cybersecurity performance all from the outside. These ratings are generated on a daily basis, giving continuous visibility into the security of important assets.

With the ability to drill down into the security details used to generate an organization’s rating, information security teams can identify and communicate the most critical security issues. Historical data also gives companies the ability to track progress of security mitigation techniques over time and measure improvements in the incident response process. BitSight customers have used these ratings to encourage investment companies to buy cyber insurance or conduct penetration testing.

Establish a Continuous Monitoring Strategy

BitSight Security Ratings are updated every day, which enables firms that manage mergers and acquisitions to continuously monitor the security posture of potential and current investments. Companies can also set up custom alerts to stay up-to-date on changes in the security posture of their portfolio companies.

Lead Informed Security Discussions

BitSight arms companies with objective metrics that help them lead data-driven conversations with investment companies. BitSight Security Ratings help organizations seamlessly bridge the gap between security issues and business contexts.

Reduce Risk, Cost Effectively

With BitSight’s easy-to-use SaaS platform, companies can manage the security of their investment portfolios through dynamic reports, issues tracking capabilities, and in-depth security metrics. No setup is required; you simply log on to the platform and monitor changes in the security ratings of your portfolio.

Aggregate View of Risk

As companies make new acquisitions, they can use BitSight to see how their entire portfolio compares to the rest of the companies in the BitSight universe. This enables teams to measure and monitor the aggregate risk of their acquisitions over time.

The CIO overseeing a large investment firm’s security strategy was looking for a way to better understand risk of portfolio companies during initial due diligence and thereafter. The company chose BitSight Security Ratings for Mergers and Acquisitions to gain updated security risk ratings and actionable insight into the cybersecurity performance of any organization.

The firm was initially impressed with BitSight when it detected malware on their network that was not picked up by other security systems. This convinced their team they could use Security Ratings to help mitigate risk within their portfolio companies. Now, the staff uses BitSight to view Security Ratings for both the firm and its portfolio companies along with the number, type, and duration of observed security events over a twelve month period.

BitSight Security Ratings for Mergers and Acquisitions

Problem

Solution

Proven Business Value

"BitSight shows that the health of STERIS’s primary network is much better than the composite network, making it clear that security investments are paying off − and should be applied to acquisitions as well."

Learn how BitSight Security Ratings can enable you to make investments and acquisitions with confidence.