Whether making or realising an investment, the first 100 days following the announcement of an acquisition require heightened vigilance to cyber risk. Sophisticated threat actors can exploit weaknesses exposed during the M&A process, including the exchange of sensitive data during due diligence, the integration of IT systems, and disruption to workflows and employees.
Preparing PortCo for Exit
Intellectual Property
Identifying key IP within a business, understanding ownership, reviewing rights agreements, and implementing appropriate protections.
Data Protection
Conducting data protection audits and reviewing policies and procedures.
Warranties and Covenants
Clearly defining responsibility for past and future cyber events, and ensuring these obligations are not breached.
Continuous Breach Monitoring
Target / Portfolio Company
- Data leaks, credential exposure and ransomware chatter
- New vulnerabilities in exposed systems
- Publicly disclosed breaches that could affect valuation
Critical Suppliers and Technology Vendors
- Cloud and SaaS Providers
- Outsourced IT Providers
- Managed Service Providers (MSPs)
Regulatory / Compliance Triggers
- Monitor for fines, investigations or regulatory actions against the target, including GDPR, SEC and FCA matters
Other Stakeholders
- Advisors (lawyers, bankers)
- Other Portfolio Companies (where infrastructure is shared)
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Insights
Private Equity Cyber Risk Checklist
The PE Cyber Risk Checklist is a ten-step diagnostic for PE fund leadership, covering every stage from pre-deal surveillance to exit readiness.
Why Private Equity Has Underinvested in Asset Safety, and Why the Window Is Closing
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5 Ways Cybersecurity Reduces Exit Valuations
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Missing Security Provisions: 10 Key Questions every Private Equity firm should ask their MSP
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