Evaluating risks in target acquisitions through Cyber Security Due Diligence
We help Private Equity investors evaluate the cybersecurity risks and compliance issues in target acquisitions
Information Security consequences increase as businesses grow
Information security is now critical for all businesses. Priorpriary data, intellectual property and customer data need protecting and with most businesses operating digitally, key digital services need protecting to ensure they continue to operate.
As businesses grow, so do the consequences of an information security breach. Reputational and financial impact, as well as fines from regulators, can have a significant impact on an acquisition.
Answering key investment questions
We help Private Equity investors evaluate the Cybersecurity risks associated with the technology products, platforms and teams in target businesses. We commonly help investors answer key investment questions concerning;
Are there appropriate cybersecurity controls to ensure customer data protected?
Are there vulnerabilities in the technology platforms?
Have the management team the appropriate skills and experience?
Have compliance requirements and industry-standard been met?
What are the key risks to growth?
Tailoring Due Diligence to sector requirements
Our approach to cybersecurity assessment is based on multiple industry standards can be configured to the business model and sector relevant to the acquisition. We can tailor our approach based on a number of factors including;
the number and type of digital platforms,
type of data managed by the company,
use of third parties,
32% of businesses experience cyber attacks
Only 36% have cyber security policies in place
Only 31% have done a risk assessment in the last 12 months
Our team work with Private Equity funds to assess the risk of future acquisitions. Our team provide the following services.
CYBERSECURITY DUE DILIGENCE
Our Cybersecurity Due Diligence framework is comprehensive, with 18 defined areas of evaluation. We evaluate each area to identify cybersecurity maturity and performance against industry key performance indicators.
Our team can undertake technical testing of digital platforms to identify existing security vulnerabilities. This testing can be passive or active penetration testing and provides evidence of critical issues that need immediate resolution.
IMPROVEMENT PLAN DEVELOPMENT
Development of a prioritised and validated action plan with the key activities required to address any findings of a Due Diligence review. We can develop a costed plan for the next 12-48 months, using costs based on the relevant geography.
Examples of the benefits we've delivered to clients
Retail : Due Diligence of a European e-commerce platform and retail stores
This pre-acquisition target was a leading European retailer with a large e-commerce platform and retail stores. Our team undertook a cybersecurity review to ensure customer data was securely managed and built an improvement plan to achieve planned revenue targets.
Retail: Review of customer Payment Card information across retail branches
Our client had an extensive network of retail stores and planned to launch new digital services including financial products. Our team undertook a cybersecurity review to ensure that customer payments information was being managed securely.