The Critical Role of Technology & Cybersecurity Due Diligence in M&A
In today’s digital world, technology is increasingly becoming an even more integral part of every business. The pandemic has given us a glance into the future: our increasing reliance on technology, whether it’s videoconferencing software, IoT, AI, or cloud-based tools. In Mergers and Acquisitions (M&A) technology is also increasingly becoming a key factor in deal success. According to recent research more than 70% of mergers fail to deliver their anticipated value. As technology increasingly permeates all business aspects, understanding a company’s IT assets, systems, and processes becomes crucial during an M&A deal.
With the recent uptick in cybercrime in general and ransomware in particular, venture capital (VC), mergers and acquisitions and private equity (PE) firms have had to broaden the scope of their due diligence efforts on potential investments to include cyber due diligence.