Essential for any Merger and Acquisition (M&A) deal is the necessity of a security consultation

Essential for any Merger and Acquisition (M&A) deal is the necessity of a security consultation

In the rapidly evolving digital landscape, mergers and acquisitions (M&A) have become commonplace. However, these transactions can pose significant cybersecurity risks if not managed properly. To mitigate these risks, best practices for implementing IT visibility and attack surface management during M&A are essential.

Thorough Due Diligence Pre-Close

A comprehensive assessment of both companies' IT environments is crucial before the deal closes. This due diligence covers hardware, software, data structures, identities (human and non-human), and security controls. The aim is to identify vulnerabilities and potential attack vectors early, including understanding data exposure across all repositories and communications to spot sensitive leaks.

Rapid, Agent-Free Visibility Tools

Quick and agent-free visibility tools are invaluable in the M&A process. These technologies connect to both organizations' systems without deploying agents or migrating data, enabling a risk snapshot within 24 hours. They visualize exposure by department, entity, and data classification, highlighting "red/amber/green" risk zones for rapid prioritization.

Red-Team Simulation and Automated Insights

Automated red-team style probes across finance, HR, legal, and IP help uncover hidden leaks and sensitive data exposures. These probes automatically generate actionable labels, data loss prevention (DLP) rules, and remediation plans assignable to data owners across both entities.

Identity and Access Management (IAM) Focus

Identifying and managing both human and non-human identities, especially orphaned and privileged accounts, is crucial post-merger. Establishing clear ownership and reviewing stale or unmanaged identities can prevent silent backdoors into merged environments.

Integration Planning with IT Security Metrics

A detailed integration plan, including milestones for IT and security alignment, user experience considerations, and communications, is necessary to maintain operations and trust during transition.

Quantification and Prioritization of Risks

Translating discovered vulnerabilities and data exposures into quantified cyber risk assessments helps price risks accurately in the deal and prioritize fixes that reduce attack surface efficiently.

Operational and Executive Reporting

Providing board-ready summaries with exposure heatmaps, ownership logs, and progress tracking maintains accountability and secures post-merger day-one operations.

In summary, best practices combine advanced technology for rapid visibility and attack surface mapping, focused identity and data exposure management, and structured IT integration processes centered on security. This approach ensures risks are known, quantified, and remediated before and immediately after deal closure.

The lack of proper security measures in the M&A process can lead to cybersecurity vulnerabilities, as exemplified by the PayPal-TIO case in 2017. The current M&A process is fundamentally flawed due to the neglect of cybersecurity considerations. Prioritizing an inventory of digital assets and risks through Attack Surface Management (ASM) is crucial for M&A success.

The threat landscape is escalating, and threat actor tactics are constantly evolving, making security a critical focus during M&A. CISOs and security teams should have a role in M&A discussions to ensure proper IT visibility and security measures. Attack Surface Management (ASM) provides comprehensive views of all entry points, assets, vulnerabilities, and attack vectors. M&A activities can add substantial risk to organizations due to the unknown IT assets being acquired. Attack Surface Management (ASM) provides a true inventory of an enterprise's digital assets before, during, and after an M&A process.

Collaboration and recognizing the important role of security teams in developing attack surface management strategies are crucial for M&A success. A successful ASM strategy includes discovery and mapping of entry points and assets, reviewing for vulnerabilities, prioritizing, and remediation. A decade after an acquisition, assets from a defunct brand were still found online, highlighting the need for ongoing vigilance in managing digital assets during and after M&A.

1. In the M&A process, identifying and managing both human and non-human identities, especially orphaned and privileged accounts, is crucial post-merger to prevent silent backdoors into merged environments.
2. Quick and agent-free visibility tools that connect to both organizations' systems without deploying agents or migrating data are invaluable during M&A, as they provide a risk snapshot within 24 hours.
3. Automated red-team style probes across finance, HR, legal, and IP help uncover hidden leaks and sensitive data exposures during M&A, and automatically generate actionable labels, data loss prevention (DLP) rules, and remediation plans.
4. A comprehensive assessment of both companies' IT environments is crucial before the deal closes, as it helps identify vulnerabilities and potential attack vectors early, including understanding data exposure across all repositories and communications to spot sensitive leaks.

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