As M&A deals become increasingly reliant on technology, the digital side of dealmaking becomes ever more sophisticated as it increases the efficiency of M&A transactions. However, the flip side is that any tech-related incidents or cybersecurity breaches have the potential for more devastating consequences for deals than ever before.
A survey conducted by Deloitte in October 2020 found that 51 per cent of respondents considered cybersecurity threats to be their top concern when managing M&A deals virtually. Meanwhile, 52 per cent of global dealmakers recently polled by MergerMarket said that the increasing importance of cybersecurity would be the most disruptive trend in dealmaking over the next year.
Cybersecurity is clearly a huge concern among dealmakers (and rightly so), but with technology so central to the process, simple inefficiencies can be just as costly. While only ten per cent of dealmakers (MergerMarket) ranked this as a top two concern heading into 2022, technology is now so vital to M&A that entire deals could be at risk from any faults or outages.
With this in mind, here are some of the potential threats that dealmakers might face and the consequences they may have for M&A deals. We’ll also examine some of the steps that parties can take (individually and collaboratively) to ensure that cybersecurity and tech malfunction risks are managed, minimised and prevented from impacting or derailing the deal.
Potential threats and their costs for M&A deals
How can dealmakers alleviate and manage risks?
Worst case scenario - Responding to incidents
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