Non-disclosure of Data Breaches Negatively Affects Acquisitions and Mergers
A recent study has shown that a company’s cybersecurity program, and how it has handled any history of data breaches, has a significant impact on its monetary sales value.
The report, by (ISC)2, asked 250 US-based mergers and acquisitions experts looking at the importance of a company’s cybersecurity program, and how much of an impact its breach history has on its valuation ahead of a potential acquisition.
Their findings revealed that 49% of those experts have seen deals completely derailed after due diligence brought an undisclosed breach to light. Furthermore, 86% of respondents said that if a company publicly reported a breach of customer or other critical data in its past, it would detract from the allocated acquisition price.