M&A Cybersecurity and Data Privacy Advisory Services

In every merger and acquisition (M&A) transaction, an organization’s physical assets are vital to accurate valuation and effective negotiation. Equally important are its digital assets as they hold the potential for significant, deal-jeopardizing risk. As a result, cybersecurity due diligence is essential to ensuring a successful transaction.

Benefits of Cybersecurity Due Diligence in M&A Transactions

The cost of cyber threat is breathtaking. According to the Cost of a Data Breach Report 2023 by IBM, the global average cost per data breach amounted to $4.45 million due to intellectual property theft, system failures, compliance risks and remediation expenses. Disregarding material risks such as these may affect valuation, indemnification and transaction completion.

Our M&A cybersecurity and data privacy professionals have the resources not only to assist with the financial and tax aspects of the transaction, but also to help buyers and sellers understand how managing cybersecurity and data privacy may affect its success.

Central to the successful merger or acquisition, cyber due diligence demands specialized expertise in operations, valuations, cyber vulnerability and protection.

Cybersecurity Due Diligence in M&A Transactions

Skillfully assessing all aspects of a business’ IT environment, our specialists inventory the strengths and weaknesses critical to making informed buy-sell decisions and, when warranted, improving IT systems. For clients on the buy side, we help identify any potential weaknesses that may lead to lower valuations. For those on the sell side, we help assure the program design and operational protections typically associated with higher valuations.

Our engagement teams comprise cybersecurity, privacy and IT operational specialists along with industry-specific mergers and acquisitions advisors. This combined experience produces a valuable advantage that firms with a singular focus on cyber-IT cannot offer: a clear, in-depth understanding of operations, business risk and optimal solutions.

Clear Communications. Ongoing Data Security Support.

As every organization is unique in its exposure and requirements, we tailor the due diligence program to address the specific vulnerabilities and considerations unique to M&A transactions. Our advisors begin by securing a detailed view of the data risk and operational vulnerabilities specific to the target company’s business model and associated resources.

Our M&A-focused IT professionals understand both the complexities and nuances of advanced technology. Translating technical language into usable, non-technical information fosters sound decision-making at every level. The insight they provide equips client management teams to address cybersecurity weaknesses, regulatory non-compliance and remediation costs required to protect networks. This perspective also enables our specialists to collaborate on resolving issues expediently and cost-effectively. Following transaction completion, we frequently support the businesses’ alignment and integration as well as the optimizing effectiveness across operations, technology and financial strategies.

Customized Cybersecurity Services for M&A Transactions

Our advisory services are available throughout a transaction, including pre- and post-deal completion, and include:

Due Diligence
Cybersecurity and Privacy Risk and Maturity Assessments
Vulnerability Assessments and Scanning
Breach Assessments
Threat Modeling
Post-Merger Integration Process Improvement
Network and Web Application Penetration Testing
Source Code Review
Privacy Program Development and Management
Virtual Chief Information Security Officer (vCISO)
Virtual Chief Information Officer (vCIO)
Social Engineering Campaigns
Security and Privacy Awareness Training
Resiliency Evaluations and Plan Developments:
- Incident Response
- Disaster Recovery
- Business Continuity
Forensic Data Acquisition and Analysis
IT Governance Development and Business Strategic Alignment
Policy and Procedure Development

Global Representation, Local Connection

PKF O’Connor Davies has distinguished representation in global, domestic, regional and local markets. With more than 150 partners and 1,400 professionals, we possess the resources to assist organizations of every type and size – while, at the same time, delivering the focused personalized attention that many larger firms cannot. Our renowned client service is available on a worldwide scale, thanks to our membership in the PKF International network of accountants and business advisors. We ensure cybersecurity and data privacy expertise for M&A transactions wherever our clients operate and wherever they pursue growth.