Mergers & Acquisitions

Mergers and Aquisitions

A merger or acquisition (M&A) event can be a huge opportunity for your business, but you must do due diligence. This can mean investing thousands of hours reviewing documents and assessing liabilities. Cyber risk is often treated as an afterthought or not addressed at all during the M&A process.

This is why complete and accurate security knowledge is key. If you are missing critical information about risks present in IT systems of the company you are about to acquire, you could face significant costs from integrating assets and then needing to remediate issues. Or worse — you could assume responsibility for the breach of an exposed asset, which also has the potential to spread back into the networks of your own organization.

Don’t treat cyber risk as an afterthought in M&A

Without a continuous and complete view of an organization’s assets and the behavior of those assets, there is no way to get a complete, current, and accurate view of its security posture. Without understanding how secure the organization is, it isn’t possible to understand the risks your business is taking on in an M&A event.

Due diligence is due for an upgrade

Security risk assessments during an M&A transaction often fall short because the tools and information currently available aren’t up to the task. That means organizations may have to send IT personnel onsite at the target company to acquire its Master IP List. Or they may try leveraging third-party risk-scoring tools that rely heavily on self-assessment or contain substantial inaccuracies and gaps in how they attribute assets to organizations. These methods give rise to a range of problems because they:

  • Often contain a large number of assets that don’t actually belong to the organization
  • Fail to include unknown or forgotten assets that do belong to the organization
  • Are time-consuming and labor-intensive
  • Only provide limited “point-in-time” visibility, rather than continuous discovery and monitoring of risk

Meanwhile, most IT teams don’t have the expertise to work through complicated (but common) M&A scenarios, like acquiring or merging with an organization that has previously acquired another company. Situations like these make technology stacks and their related attack surfaces more difficult to assess for cybersecurity risk.

Mergers and Acquisitions Checklist

Learn How to (Securely) Integrate a New Network

Assess cyber risk before you close the deal

Expanse discovers and indexes all assets on the public Internet. We provide a continuously updated list of all the assets you’d acquire along with your M&A target, including IP addresses, Internet-exposed services, digital artifacts, and known and shadow cloud IaaS instances.

This means you can:

  • Identify risky assets belonging to the target organization
  • Identify non-compliant or risky asset communications
  • Work with the target organization to remediate risks before the transaction is complete
  • Ensure full integration and security of assets after the transaction is finalized

And you can complete cyber due diligence:

  • Faster: In days, not weeks or months.
  • Better: Expanse indexes the entire public Internet for assets that tie back to an organization
  • At a lower cost: Sending staff on site is expensive. Expanse performs the discovery and analysis for you.

An M&A event is a massive opportunity, but one that is important to get right. Don’t wait to find your new M&A’s assets until they’re hacked. Expanse provides you with global visibility to help lock down your investment.

Learn More About M&A Due Diligence With Expanse