​M&A due diligence often reveals deal-breaking cybersecurity issues

Even as one-time Internet giant Yahoo is swallowed in a $6.5 billion acquisition, merger and acquisitions (MA) experts have warned that due-diligence audits of companies targeted for acquisition often reveal cybersecurity risks that compromise compliance and could threaten the merger and acquisition activities.

The warnings come in the wake of [[xref:http://www.westmonroepartners.com/Insights/White-Papers/security-survey |new research]], compiled for West Monroe Partners by research firm Mergermarket, that found 70 percent of acquisition targets had compliance issues and nearly half lacked comprehensive data security architectures.

Audits had revealed an abundance of security issues when companies were closely examined by potential acquirers: fully 37 percent of respondents said they had seen targets prove to be vulnerable to insider threats, with 27 percent lacking a data-security team and 17 percent having weak employee password policies.

A third of respondents said they had previously found inadequate mobile security at target companies, while 30 percent had found

... read more at: http://www.cso.com.au/article/604317/m-due-diligence-often-reveals-deal-breaking-cybersecurity-issues/