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BitSight for Mergers and Acquisitions

Companies have insight into the financial, legal, and regulatory risks involved in the M&A process — but what about cyber risk?

When cybersecurity due diligence has traditionally occurred, it tends to be a “check-the-box” discussion to ensure there aren’t any glaring red flags. That’s not enough - an inadequate cybersecurity review can introduce unwanted threats that aren’t detected until it’s too late or after a merger occurs, negatively impacting the deal’s value and completion.

To proactively mitigate risk, companies need automated tools that continuously and objectively measure and monitor the security of potential acquisitions and current investments.

Companies have insight into the financial, legal, and regulatory risks involved in the M&A process — but what about cyber risk?

When cybersecurity due diligence has traditionally occurred, it tends to be a “check-the-box” discussion to ensure there aren’t any glaring red flags. That’s not enough - an inadequate cybersecurity review can introduce unwanted threats that aren’t detected until it’s too late or after a merger occurs, negatively impacting the deal’s value and completion.

To proactively mitigate risk, companies need automated tools that continuously and objectively measure and monitor the security of potential acquisitions and current investments.

Don’t inherit cyber risk

Don’t inherit cyber risk

Lead informed trading discussions with target companies

Lead informed trading discussions with target companies

Reduce post-acquisition portfolio risk

Reduce post-acquisition portfolio risk

Financial Services Security Performance Management

BitSight Security Ratings for Mergers & Acquisitions provide a comprehensive, timely, data-driven analysis of your target company’s security performance to support or facilitate due diligence efforts. 

Research shows a strong correlation between a higher security rating and stock performance. Companies with a less robust rating are more susceptible to risk, and even a single breach can cause material short-term damage to an organization’s stock price and market share. 

Don’t get stuck in a bad deal. With the insight that BitSight brings, your valuation teams can consider risks that were previously opaque during the research and discovery phase and use this risk intelligence to compare potential targets, evaluate transactions, and guide deal negotiations.

Performing this initial evaluation will reinforce and enhance your company’s own security posture and strategy and may end up being one of your most important M&A investments.

EVA Invite

Your target doesn’t want to have a poor security posture, but they may not fully know the risk they pose. Communicate risks in a way everyone understands and work with them to boost their security profile — and protect your company in the process.

BitSight delivers easy-to-understand risk metrics that allow you to convey security risks with stakeholders in straightforward business terms. If your security teams find a critical issue, you can share these findings with the target company via the BitSight portal to facilitate further investigation and rapid remediation prior to deal closure.
 

Portfolio Reports

Once the deal is closed, the work is just beginning. You need to ensure the risk level remains low. 

Post-acquisition, BitSight makes it easy and cost effective to continuously measure and monitor the aggregate risk of your acquisitions over time. Use BitSight to establish acceptable thresholds for companies in your portfolio and set up custom alerts to stay up-to-date on any deviations in the security postures of potential and current investments.

With these insights you can help your investments maintain strong cybersecurity postures based on observed security issues on their networks. You can protect yourself--and your deals--long after those deals are done.

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