Cyber Due Diligence

In today’s digital landscape, cybersecurity is no longer a luxury—it’s a necessity. Especially in the context of mergers and acquisitions (M&A), an organisation’s cybersecurity posture can significantly impact its value and the deal’s success.

When you’re merging with or acquiring a business, you need to know the potential cyber risks involved as these are often overlooked. Our team of seasoned cybersecurity experts will provide you with a clear understanding of the target company’s cyber risk landscape.

Our approach leverages a combination of technical and desk-based review techniques to answer the following three simple questions:

1. Is the seller exposed to a high threat level, e.g. are they easy to attack and breach?
2. Is the seller already breached, e.g., is there a compromise of trust / IP already?
3. Is the seller operating safely, e.g. do they have reasonable governance & control in security to instil confidence in management?

Our approaches to ascertaining these answers leverage numerous techniques and skill levels within Nellcote to develop a simple output that includes a scorecard that can be leveraged by the deal team to understand the impact posed.

Our Methodology

Our Cyber Due Diligence methodology follows a structured and thorough process:

• Initial Assessment: We start by identifying the target company’s key digital assets, their existing cybersecurity measures, and the regulatory landscape of their industry.
• Detailed Evaluation: Using advanced tools and techniques, our team conducts a detailed analysis of the target company’s security infrastructure, policies, and procedures.
• Risk Identification: We identify potential risks and vulnerabilities in the target company’s cybersecurity posture. This could include technical vulnerabilities, gaps in policies, or non-compliance with regulations.
• Impact Analysis: We estimate the potential impact of identified risks on the M&A transaction. This includes potential financial implications, reputation damage, or regulatory penalties.
• Mitigation Strategy Development: Based on our findings, we propose a mitigation strategy to address identified risks. This could include changes to the deal structure, remediation activities to be performed, or contingencies to be included in the deal agreement.
• Reporting: We provide a detailed yet easy to consume report of our findings, along with our recommendations. This report supports informed decision-making about the M&A transaction.

At Nellcote, we understand the importance of cybersecurity in today’s business world. Our Cyber Due Diligence service ensures that your M&A activities are built on a secure foundation, protecting your investment and supporting your business growth.