Assessing the target company's cyber resiliency and establishing a list of non-negotiables are among the top strategies for conducting healthcare merger and acquisition cybersecurity due diligence.
What is the importance of assessing cyber resiliency in M&A?
Assessing the cyber resiliency of a target company is essential because it helps buyers understand the overall cyber maturity and the potential risks associated with the acquisition. This evaluation allows buyers to plan for necessary improvements and ensures they are aware of the cybersecurity posture of the organization they are acquiring.
What are key components to consider in cybersecurity due diligence?
Buyers should focus on several key areas during cybersecurity due diligence, including data protection practices, identity and access management, endpoint detection and response, backup strategies, user training, and incident response plans. These components are vital for understanding the target organization's ability to protect sensitive data and maintain operational continuity.
How can establishing non-negotiables benefit the M&A process?
Establishing a list of non-negotiables helps both the buyer and the target organization prioritize areas for improvement and ensures readiness for integration. This proactive approach can lead to smoother transactions and better security practices, ultimately enhancing the overall cybersecurity posture of the combined entities.
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