How Cybersecurity Protects Valuation: Considerations For Private Equity In The Deal Lifecycle
Cybersecurity risk applies to businesses of all sizes and across all industries - it is a risk that cannot be ignored.
Importance of Cybersecurity in Valuation
Cybersecurity risk is essential for businesses of all sizes and industries, particularly during the deal lifecycle. Investors have observed that value can diminish significantly after an acquisition target experiences a breach. The increasing volume and complexity of data, along with sophisticated threat actors, make it vital to assess cybersecurity risks before closing a deal. Including cybersecurity in the due diligence process can reveal potential risks and necessary investments that impact overall valuation.
Impact of Cyber Breaches on Investments
A cyber breach can have lasting effects on a company's valuation, impacting profitability and investor confidence. For instance, the 2021 data breach of LastPass exposed sensitive user information, which likely diminished its valuation. Additionally, breaches can lead to legal consequences and regulatory scrutiny, further affecting a company's financial standing and potential returns for investors.
Best Practices for Cybersecurity in Private Equity
Private equity firms should adopt several best practices to manage cybersecurity risks effectively. This includes conducting thorough due diligence on the target company's cybersecurity measures, assessing IT infrastructure, and understanding incident response plans. Establishing clear responsibilities for data protection and incorporating cybersecurity considerations into post-acquisition strategies can help safeguard the value of the investment and ensure compliance with regulatory requirements.
How Cybersecurity Protects Valuation: Considerations For Private Equity In The Deal Lifecycle
published by Montra
Montra® Technologies is a leading innovator of identity and device management solutions for modern companies. Modern IT management puts identity at the center of secure provisioning of all services and devices used by your workforce. Montra’s platform, Via, integrates with your current HR and IT software for seamless, automated management of people and devices, regardless of location. Montra is trusted by some of the world’s most recognized brands which use Montra's innovative platform to improve the security of their identity and device operations.
The company was founded by industry experts with decades of technology leadership. Recognized by Channel Futures as an MSP to Watch and listed on the Inc. 5000, Montra is a Signature member of the ATDC at Georgia Tech. For more information visit www.montra.io or connect with us on LinkedIn or Twitter. management, user security, user support, device monitoring, device security, device deployments and repairs management.
Montra is based in Atlanta, Georgia, USA with customers worldwide. For more information please us at www.montra.io or contact us at info@montra.io.
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