Page 83 - Cyber Defense eMagazine March 2024

P. 83

CTI for M&A

Active dark web Intelligence to aid M&A

By Shawn Loveland, COO, Resecurity

Every industry-leading company has gone through mergers and acquisitions (M&A) at some point to
acquire a competitor, expand into a new market, or gain access to intellectual property or technology. As
M&A involves extensive risk for any company, how it is carried out can unlock or destroy millions of
dollars in value. Although M&A transactions often undergo screening, External CTI is not part of all M&A
vetting or portfolio monitoring processes. However, CTI can answer critical questions that the acquiring
company needs to know to determine the risks of acquiring or making a strategic investment. Some of
these questions include:

1. Is the company experiencing a data breach, or has it experienced an undisclosed one in the past?
2. Will the company experience a data breach in the future?
3. Has the strategic IP of the company been leaked on the dark web?
4. How does this company compare to the cybersecurity risk with its competitors and other
companies evaluated by the M&A entity?
5. Has a data breach or loss been detected that could cause regulatory issues (Such as the US
Securities and Exchange Commission rule 7) or privacy concerns and materially affect the deal
or pose a risk to the acquirer if the deal were finalized?
6. Has the company been involved in an unknown or undeclared material breach, as defended by
the recent SEC rule 7, that the company must disclose once known about? These identified issues

78 79 80 81 82 83 84 85 86 87 88