Mergers and acquisitions can be a powerful growth strategy, but they can also open the door to costly cyber risks if not managed correctly. From hidden vulnerabilities and unsecured third-party relationships to regulatory violations, ignoring cybersecurity during M&A can quickly turn a strategic win into a long-term liability.
Here are six essential steps to ensure your deal is cyber-secure, plus actionable tips and service recommendations to guide your planning.
1. Perform a Cybersecurity Due Diligence Assessment
Before finalizing an M&A transaction, it’s critical to understand the full cybersecurity risk profile of the organization you’re acquiring. Cybersecurity due diligence often begins with a Security Risk Assessment—designed to uncover hidden vulnerabilities, control gaps, past incidents, and latent risks that could jeopardize the deal or compromise your environment once systems are integrated.
Why it matters: Without due diligence, you could inherit outdated software, unresolved breaches, or compliance gaps that result in fines or breaches post-close.
Take Action:
- Assess: Review existing audit logs, previous incidents, known vulnerabilities, and perform a gap analysis of the organization’s cyber maturity
- Implement: Schedule a Security Risk Assessment to uncover technical and process-level weaknesses before they impact your deal
- Strategize: This should be conducted early in the deal process, ideally before the Letter of Intent (LOI) is finalized or during initial due diligence
Need help getting started? Contact us here.
2. Review Security Policies and Controls
Security policies define how an organization protects its data, systems, and users. Controls are the specific tools and configurations used to enforce those policies, like encryption, multi-factor authentication (MFA), and endpoint protection. M&A often exposes gaps in alignment between policies and execution—or reveals entirely missing layers of protection.
Why it matters: Inconsistent or outdated policies could expose sensitive data, violate compliance, and create operational chaos during integration.
Take Action:
- Assess: Audit the existing security policies (e.g., access control, incident response, data retention) against industry best practices and your internal standards
- Implement: Schedule a Security Policy & Control Review to gain expert insight into the strength and alignment of your existing security practices
- Strategize: Conduct this review before integration begins and use it to align policies across both organizations
3. Evaluate Third-Party & Vendor Risks
Every organization depends on external vendors, SaaS platforms, and third-party tools. Each of these relationships introduces a potential vulnerability. During M&A, you inherit not just the company but its entire vendor ecosystem—often with little documentation or oversight.
Why it matters: A breach at a third-party vendor could compromise your entire network or customer base, even after the acquisition is complete.
Take Action:
- Assess: Inventory third-party tools, vendors, and platforms. Evaluate each for current security posture, access rights, and integration with critical systems
- Implement: Leverage third-party risk management solutions to conduct risk scoring and access audits across vendor relationships
- Strategize: This process should happen during due diligence and be updated immediately post-close as vendor contracts are evaluated or renewed
Need help with this? Contact us here.
4. Assess Compliance & Regulatory Exposure
Many industries carry strict compliance requirements—HIPAA, PCI-DSS, GDPR, and others. When acquiring another company, you assume their compliance obligations (or lack thereof). Regulatory misalignment can lead to fines, legal consequences, or operational disruption.
Why it matters: If the company you acquire isn’t compliant, you become liable. These gaps often aren’t uncovered until after the deal—when it’s too late.
Take Action:
- Assess: Conduct a gap analysis between your compliance requirements and those of the target company. Include data handling practices, breach notification processes, and retention policies
- Implement: Organize your existing compliance documentation—then request a Compliance & Regulatory Security Assessment, such as a CMMC Assessment, to uncover gaps, minimize risk exposure, and ensure your deal aligns with all required industry standards before closing
- Strategize: This should be completed during legal and financial due diligence, not after the integration process begins
5. Plan a Secure Integration Strategy
M&A often requires the merging of IT systems, networks, applications, and user directories. Without a solid integration plan, you risk misconfigured access, exposed systems, and major downtime.
Why it matters: Integration is one of the most vulnerable moments in an M&A lifecycle. Mistakes here can compromise entire networks and erode trust quickly.
Take Action:
- Assess: Thoroughly map your IT systems, interdependencies, and user roles, while pinpointing critical integration points across platforms, cloud environments, and authentication frameworks to ensure a seamless and secure merger
- Implement: Schedule an Integration Security Strategy Session to design a phased, secure roadmap that includes identity protection, MFA, endpoint, and perimeter security controls
- Strategy: Integration planning should begin before closing, with clear execution milestones immediately post-deal
6. Engage a Cybersecurity Partner or vCISO
A vCISO (Virtual Chief Information Security Officer) is a part-time or project-based executive who provides expert leadership in cybersecurity strategy, risk management, and regulatory alignment. They act as a critical advisor during M&A to ensure nothing falls through the cracks.
Why it matters: Having an experienced cybersecurity executive during M&A ensures risks are identified, prioritized, and addressed—without requiring a full-time hire.
Take Action:
- Assess: Review whether your team has the internal resources and expertise to guide the deal securely end-to-end
- Implement: Meet with a vCISO team for strategic guidance across M&A due diligence, integration planning, and post-close support
- When: Engage a vCISO as early as possible—ideally before LOI or immediately upon entering serious deal negotiations
Next Steps for M&A Success
Cybersecurity is no longer just an IT concern—it’s a strategic, financial, and legal priority in any M&A transaction. Overlooking cyber risk during a deal can result in costly consequences such as inherited vulnerabilities, regulatory penalties, data breaches, and even loss of brand trust. Taking proactive steps—like conducting thorough assessments, securing integrations, and engaging expert partners—can mean the difference between a smooth transition and a post-acquisition crisis.
Whether you're acquiring a company or preparing to be acquired, it's essential to have a clear cybersecurity strategy in place from day one. The good news? You don’t have to navigate it alone. With the right team, tools, and approach, you can secure your deal, protect your investment, and build a stronger, more resilient business moving forward. Start your journey toward a secure and successful M&A—contact us to learn how a Cyber Due Diligence Assessment can make all the difference.