Cybersecurity Mergers & Acquisitions - Crown Jewels and Red Flags

Simplifying Cyber

Ever wonder what lurks beneath the surface of that shiny acquisition target? Our expert panel, featuring M&A Expert Brandon Kern, pulls back the curtain on the hidden cyber risks that can make or break your next deal.
When companies merge or acquire, cybersecurity considerations often take a backseat to financial projections and market synergies. Yet overlooking digital vulnerabilities can transform a strategic investment into a costly liability. In this revealing conversation, corporate veterans and M&A specialists share battle-tested strategies for conducting effective cyber due diligence without derailing deal momentum.
The discussion kicks off with a practical comparison: cyber due diligence functions much like a home inspection when purchasing property. Just as you wouldn't commit to buying a house without checking for structural damage, acquiring a business without assessing its cybersecurity posture can lead to expensive remediation costs or even devaluation of critical assets. Our experts emphasize focusing on the "crown jewels" – the specific intellectual property, customer data, or technology capabilities that motivated the acquisition in the first place.
Timing emerges as a crucial factor throughout the conversation. Bringing in cybersecurity professionals early provides opportunity to identify risks that might affect valuation or negotiation terms. However, the panel acknowledges the delicate balance between thorough assessment and maintaining deal momentum. They share practical approaches for prioritizing critical issues while deferring less immediate concerns to post-close planning – allowing security to enable rather than impede business objectives.
The conversation also addresses often-overlooked aspects of M&A cybersecurity, including third-party relationships that come with the acquisition, organizational change management to reduce resistance, and strategies for maintaining business continuity during integration. With firsthand experience from both corporate and consulting perspectives, our experts provide a comprehensive playbook for protecting deal value through strategic cybersecurity planning.
Whether you're a corporate development executive, private equity investor, or security leader supporting M&A activities, this episode delivers actionable insights for your next transaction. Listen now to learn how proper cyber due diligence can safeguard your investments and accelerate post-merger integration.

Chapters

1. Introduction to Cyber in M&A (00:00:00)

2. Understanding Crown Jewels in Acquisitions (00:05:25)

3. Aligning Cyber Due Diligence with Business (00:09:05)

4. Speed vs Thoroughness in Deals (00:14:25)

5. Post-Close Planning and Integration (00:18:34)

6. Managing Resistance and Cultural Change (00:21:24)

7. Reveal Risk's Unique Approach to M&A (00:23:12)