Page 149 - Cyber Defense eMagazine RSAC Special Edition 2025

Cybersecurity Due Diligence in Mergers and Acquisitions:
Essential Focus Areas

By Tom Cockriel, co-leader of Trenam Law’s Business Transactions practice group,
Trenam Law

Introduction

Many companies view mergers and acquisitions (M&A) as opportunities for growth, market expansion,
talent acquisition and enhanced operational efficiencies. However, they also include potential
cybersecurity risks that, if not properly assessed and addressed, could result in financial losses,
reputational damage and legal liabilities for the acquirer.

Cybersecurity due diligence should be a core part of any M&A strategy so that acquirers are fully aware
of potential risks before finalizing the acquisition. Diligence should include members of the acquirer along
with third-party advisers such as technical IT and cybersecurity advisers and legal counsel. This article
explores essential areas, largely from a legal perspective, that acquirers must examine when conducting
cybersecurity due diligence during M&A transactions. It should be noted that data protection and privacy
regimes and industry practices are fast-evolving, and cybersecurity diligence does and will continue to
evolve as well. Acquirers should work with knowledgeable internal and third-party advisers and take into
account any industry-specific and geographic-specific concerns related to the target company.

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