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Cybersecurity for M&A: Due-Diligence Best Practices

  • Writer: Kurt Smith
    Kurt Smith
  • 4 days ago
  • 5 min read

Mergers and acquisitions are milestones that can redefine a company’s trajectory. Yet, behind every exciting deal lies a web of risks that are often hidden beneath the surface of spreadsheets and legal documents. One of the most critical, and most overlooked, areas is cybersecurity. If cyber vulnerabilities are missed during due diligence, they can not only erode the value of a deal but also invite legal, financial, and reputational damage.


Cybersecurity for M&A is not just about preventing cyberattacks. It’s about ensuring that the transition from two entities into one is smooth, secure, and built on a foundation that won’t crack under pressure. This article explores the essential cybersecurity best practices companies must adopt during the due diligence phase and beyond.


Cybersecurity for M&A | Working Excellence

Why Cybersecurity Due Diligence is Non-Negotiable


Organizations typically focus on financials, legal status, and operations when evaluating a target company. But what happens when that target has an undisclosed breach? Or relies on outdated systems with open vulnerabilities?


Neglecting cybersecurity due diligence can lead to:

  • Acquisition of hidden vulnerabilities

  • Integration of incompatible or insecure systems

  • Compliance issues across jurisdictions

  • Loss of customer trust


At Working Excellence, we help clients uncover these risks before the deal is finalized. Our methodology examines not just current cybersecurity practices, but also how scalable and adaptable the target's security posture is for future growth.


Core Elements of M&A Cybersecurity Due Diligence


Every M&A deal is unique, but a few core cybersecurity assessments apply across the board. Below is a structured view of what must be evaluated:

Due Diligence Area

Key Focus Points

Why It Matters

Risk Assessment

Identify vulnerabilities, exposure to threats, prior incidents

Prevents inheriting hidden liabilities

Compliance Evaluation

Review alignment with HIPAA, GDPR, SOX, NIST, and other standards

Avoids regulatory fines and post-deal remediation

Infrastructure Review

Audit cloud, on-premise, and hybrid environments

Detects misconfigurations and legacy tech

Data Protection Practices

Assess encryption, access control, and data governance

Ensures business continuity and protects IP

Vendor Risk Analysis

Evaluate third-party service providers and supply chain security

Reduces risk of indirect compromise

These areas form the foundation of an intelligent M&A cyber risk strategy that not only identifies red flags but creates a roadmap for post-acquisition security.


Timing is Everything: When to Conduct Cybersecurity Assessments


The best time to evaluate cybersecurity is before the deal is signed. By integrating cybersecurity into early deal phases, companies gain better negotiating power and a clearer understanding of risk impact on valuation.


Delaying cybersecurity analysis until post-deal creates three major problems:

  • Limited ability to renegotiate terms

  • Higher remediation costs

  • Increased operational disruption


At Working Excellence, we evaluate the target company’s security posture upfront, uncover vulnerabilities, review breach history, and benchmark against recognized industry standards. This provides stakeholders with full visibility into any cyber risks that could impact deal terms, speed of integration, or regulatory compliance.


Navigating Integration Risk with Precision


Integration is where theory meets execution. Merging two infrastructures, cultures, and systems is never easy, and when done without a cyber plan, it opens dangerous cracks.


We focus on:

  • Mapping legacy systems that may conflict or duplicate functionality

  • Identifying overlapping applications and endpoint configurations

  • Aligning identity and access management between organizations


Our team builds phased integration roadmaps that balance speed with security. This allows deal teams to migrate users and systems with confidence, knowing that critical assets are protected throughout the process.


Managing Compliance Across Jurisdictions


In cross-border M&A, one of the trickiest challenges is compliance. The target company may operate under a completely different set of regulatory obligations.


Whether you’re dealing with:

  • GDPR in Europe

  • HIPAA in healthcare

  • NIST or CMMC in defense contracts

  • PCI DSS in retail and payments

    ...you need a clear strategy to align frameworks from Day One.


Working Excellence brings together legal, technical, and governance expertise to ensure nothing slips through the cracks. We assess where the acquirer and target company differ in their obligations, then build a harmonized policy approach to bring both into alignment quickly.


Helping Executives See the Bigger Picture


Not every board or deal team is fluent in cybersecurity. But the implications of cyber risk touch valuation, operations, and even shareholder confidence.


We specialize in translating cyber issues into language that business leaders understand. That means:

  • Creating visual risk profiles for boards and investors

  • Modeling the financial impact of known vulnerabilities

  • Providing clear, actionable recommendations


This approach helps companies make informed decisions, not just on whether to proceed with a deal, but how to structure it to ensure long-term security.


From Risk Assessment to Resilient Growth


Working Excellence delivers end-to-end cybersecurity strategy throughout the M&A lifecycle.


Here’s how we create value at each phase:

  • Pre-Deal: Identify and quantify cyber risk before signing

  • Day One: Ensure operational continuity and regulatory readiness

  • Post-Merger: Integrate systems securely and eliminate tech debt


Our strategy delivers tangible outcomes:

  • Reduced risk of inheriting breaches or weaknesses

  • Stronger regulatory alignment

  • Smoother integration of people, processes, and platforms

  • Greater confidence among investors and internal teams


Enterprises rely on our expertise during M&A because we bring clarity in moments of uncertainty, allowing them to move fast while staying secure.


Take the First Step Toward a Secure Acquisition


Cyber risks don’t wait for the ink to dry. Neither should your cybersecurity strategy. Whether you’re planning an acquisition or already in the thick of integration, Working Excellence is your strategic partner in building a cyber-resilient future.



Ready to protect your next deal? Contact us today to build a secure path to scalable growth.


Frequently Asked Questions

What is cybersecurity due diligence in mergers and acquisitions?

Cybersecurity due diligence in M&A refers to the process of evaluating a target company's security posture before the deal closes. It includes reviewing past breaches, assessing current infrastructure, identifying vulnerabilities, and ensuring regulatory compliance. This helps acquirers make informed decisions and avoid inheriting costly risks.

When should cybersecurity be assessed during an M&A transaction?

Cybersecurity should be assessed as early as possible, ideally during the pre-deal phase. Conducting due diligence before signing the agreement allows buyers to identify cyber risks that could impact valuation, deal terms, or post-merger integration. Late-stage discovery of security flaws often leads to delays, renegotiation, or financial losses.

How do cybersecurity risks affect M&A deal value?

Cyber risks can significantly reduce the value of a merger or acquisition. Hidden vulnerabilities, non-compliant systems, or legacy IT environments may require costly remediation or expose the buyer to legal liabilities. Identifying these risks early ensures that they are accounted for in the valuation and integration planning.

What are the most common cybersecurity risks in M&A?

Some of the most common cybersecurity risks that emerge during mergers and acquisitions include:

  • Undetected data breaches that haven’t been disclosed by the target company

  • Weak access controls or poor identity and privilege management across systems

  • Legacy infrastructure with outdated or unsupported security protocols

  • Misaligned regulatory compliance, such as differences between GDPR, HIPAA, or CCPA obligations

  • Third-party and vendor risks, especially in companies with complex supply chains

These risks can severely impact valuation, slow down integration, or lead to post-acquisition disruptions if not identified and addressed early.

How can companies ensure secure IT integration after an acquisition?

To ensure secure integration, companies should develop a phased cybersecurity roadmap that aligns systems, unifies access controls, and harmonizes compliance frameworks. This includes auditing infrastructure, consolidating endpoint protection, and implementing continuous threat monitoring. A trusted partner like Working Excellence can guide this process to avoid disruption and ensure long-term resilience.


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