An often-forgotten yet key factor in the closing of a merger or acquisition is cyber due diligence. With complex cyber threats rising, understanding the target’s cyber security risk profile is essential to a successful transaction. 

Cyber due diligence (CDD) enables you to identify and assess cyber-related risks before closing a deal, giving you the information needed for effective integration planning and providing clarity on the steps required to make sure your organization remains secure post-transaction. 

For some, cyber due diligence may be a new term. There is no overstressing its importance, however, and understanding the ins and outs can save your business from potential hassles in the future. 

Let’s take a deeper look at its steps and how it can help your business be successful.

Achieving Cyber Due Diligence

When performed by an expert cybersecurity team, cyber due diligence typically involves a few steps. These can include:

  • Step 1: Assessment: The first step is to assess the target entity’s security posture. An expert team will look at their technologies, processes, and people and identify any areas of weakness or vulnerabilities. They will also review and validate security policies, procedures, and documentation.
  • Step 2: Investigation and Testing: With the assessment complete, the next step is to investigate any findings from the assessment that may indicate a material risk to the transaction. This investigation should include activities such as logging reviews, system scans/penetration tests, user privilege reviews, and more.
  • Step 3: Remediation: Once the assessment and investigation are complete, any issues that pose a risk to the transaction must be remediated. Remediation activities can include activities such as implementing patches and other security measures, updating policies or procedures, and creating new documentation.

Benefits of Cyber Due Diligence 

With cyber due diligence, the benefits are almost limitless.

  • Peace of mind: Cyber due diligence gives you the assurance that any cyber-related risks are identified and addressed before closing a deal.
  • Reduce risk: A thorough cyber due diligence process helps reduce your overall risk exposure when entering into a new transaction.
  • Cost savings: By avoiding integration issues later down the line, you can save both time and money on future investments such as cybersecurity insurance premiums. 

Business Owners Should Be Concerned with Cyber Due Diligence – Here’s Why

Given the complexity of modern cyber threats, performing proper cyber due diligence should be an integral part of any merger or acquisition process for business owners. Having clear visibility into the target company’s security posture prior to closing will give you confidence in understanding what steps need to be taken to ensure success post-transaction. 

ThrottleNet is a Full Service IT Security Company

ThrottleNet understands the importance of cyber due diligence for business owners and offers comprehensive services to help protect your organization from potential cyber threats. 

Our team of experts has experience with all stages of the cyber due diligence process, from assessment to investigation and testing, to remediation activities. We’ll work closely with you and your team throughout the entire process, giving you peace of mind knowing that any potential risk factors have been properly identified and addressed prior to closing a deal. 

With ThrottleNet’s help, you can be sure that your organization remains secure before, during, and after a transaction. 

Russia's Hybrid War: What to Know About Hackers and Ukraine

16 Ways to Protect Your St. Louis Business From Cyberattacks

Free Download
15 Ways to Protect Your Business from Cyberattacks