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Mitigating M&A Cyber Risk: Pre- & Post-Acquisition Due Diligence – Above the Law

Robust
cybersecurity
and
due
diligence
on
a
potential
target
are
imperative
in
the
face
of
escalating
cyber
threats
and
regulatory
expectations.
Comprehensive
pre-
and
post-acquisition
due
diligence
help
safeguard
the
buyer’s
investment
by
identifying
and
mitigating
information
security
risks
associated
with
the
transaction.
This
includes
defining
and
implementing
minimum
standards
for
an
acquisition
not
immediately
integrated.


Why
M&A
cybersecurity
due
diligence?

  1. Serves
    as
    a
    crucial
    risk
    mitigation
    tool
    to
    uncover
    undisclosed
    breaches
    and
    better
    assess
    the
    time
    and
    cost
    required
    to
    bring
    target
    up
    to
    defined
    information
    security
    standards.
  2. Provides
    leverage
    in
    negotiations
    for
    purchase
    price
    adjustments
    and
    additional
    representations/
    warranties
    by
    the
    seller.
  3. Identifies
    ways
    to
    reduce
    insider
    threats,
    stemming
    from
    potential
    job
    security
    concerns
    of
    target’s
    employees.
  4. Positions
    the
    buyer
    to
    capitalize
    on
    the
    Self-Disclosure
    Compliance
    Safe
    Harbor
    Policy
    from
    the
    US
    Department
    of
    Justice.
  5. Reduces
    regulatory
    and
    third-party
    litigation
    exposure
    to
    the
    buyer,
    as
    well
    as
    whistleblower
    risk.


Representative
cyber
due
diligence
work
streams
pre-acquisition

Mitigate-Escalating-M&A-Related Cyber-Risk-Table1b


Representative
cyber
due
diligence
activities
post-acquisition

We
invite
you
to
reach
out
to
continue
the
conversation
around
ways
to
reduce
information
security
risk
associated
with
a
transaction,
and/or
other
forensic
areas
of
interest,
such
as
fraud,
theft
of
trade
secrets,
cybercrime,
accounting
irregularities,
export
controls
and
sanctions
compliance,
bribery
and
corruption,
and
anti-money
laundering.


About
CRA


CRA’s
award-winning
Forensic
Services
Practice

leverages
the
experience
derived
from
conducting
thousands
of
cyber
incident
response
investigations
to
help
clients
proactively
reduce
business
and
compliance
risk,
including
cyber
risk.
Recent
accolades
include
being
named
CrowdStrike’s
Americas
Engagement
Licensing
Program
Partner
of
the
Year
and
Tanium’s
Information
Security
Innovation
Partner
of
the
Year.
Numerous
colleagues
have
been
recognized
by
Who’s
Who
Legal
and
included
in
The
Consulting
Report’s
list
of
“Top
Cybersecurity
Consultants.”



Contact


Kristofer
Swanson,
CPA/CFF,
CFE,
CAMS

Vice
President
and
Practice
Leader,
Forensic
Services
+1-312-619-3313
|

[email protected]


Aniket
Bhardwaj,
GREM,
GCIA,
GNFA,
GCFA

Vice
President,
Forensic
Services
+1-416-323-5574
|

[email protected]



CRA’s
Forensic
Services
Practice

including
our
digital
forensics,
eDiscovery,
and
cyber
incident
response
lab

is
certified
under
ISO
27001
standards.
The
Practice
has
been
recognized
by
National
Law
Journal,
Global
Investigations
Review,
and
ranked
by
Chambers.
CRA’s
clients
over
the
past
two
years
included
97%
of
the
Am
Law
100
law
firms,
and
82%
of
the
Fortune
100
companies.