Cybersecurity Blind Spots That Kill M&A Deals

The Hidden Icebergs in M&A Deals

M&A due diligence often overlooks cybersecurity, resulting in blind spots that can sink an otherwise sound acquisition:

• Undisclosed or Undetected Breaches: Active or unresolved compromises remain hidden.
• Weak Security Posture: Outdated controls and poor culture become liabilities for the acquirer.
• Compliance Gaps: Failures in GDPR, HIPAA, PCI DSS, or other standards can trigger fines and lawsuits.
• Integration Complexity: Incompatible infrastructures and policies drive unexpected costs and delays.
• Intellectual Property Theft: Compromised or insecure IP devalues the core acquisition asset.
• Supply Chain Vulnerabilities: Risks inherited through third-party dependencies spread to the acquirer.

Expert Analysis: The Cost of Overlooking Cyber Risks

The consequences of ignoring cyber risk in M&A can be severe:

• Financial Devaluation or Deal Collapse: Price reductions, renegotiations, or outright abandonment when liabilities surface.
• Operational Disruption & Downtime: Malware transfers, incompatible systems, or integration halts.
• Reputational Catastrophe: A breach after closing erodes trust in both the acquirer and the deal itself.
• Regulatory Penalties: The acquirer inherits the target’s compliance obligations — and liabilities.
• Erosion of Business Value: Compromised data or IP undercuts the very rationale for the deal.

CRG’s Four-Phase Solution: Illuminating Blind Spots

Phase 1: Pre-Diligence Cyber Risk Profiling (Rapid Assessment)

High-level scan of the target’s cyber posture, highlighting immediate red flags for deal teams.

Phase 2: Deep-Dive Technical Due Diligence (Comprehensive Analysis)

Detailed review of infrastructure, operations, governance, compliance history, and IP/data protection practices.

Phase 3: Integration Security Planning (Proactive Roadmapping)

Roadmap for secure IT and security integration, prioritizing high-risk areas and resource needs.

Phase 4: Post-Acquisition Security Alignment (Sustained Resilience)

Ongoing support to unify security operations, culture, training, and reporting across the new entity.

Why CRG? Your Strategic Partner in Secure M&A

• Specialized M&A Cybersecurity Expertise: Translating complex findings into clear business and financial implications.
• Holistic Approach: Covering technical, operational, compliance, and cultural risk dimensions.
• Veteran-Owned & Agile: Disciplined, adaptable team with federal contracting credentials (SDVOSB, GSA HACS SINs).
• Quantifiable Risk Assessment: Delivering measurable, data-driven insights, not just checklists.
• Track Record of Success: Including the $2B Fiserv & First Data LATAM merger — zero critical findings, global regulatory compliance.
• Federal Cyber Experience: Deep roots with DHS CISA and the Department of State, ensuring readiness for highly regulated markets.

Turning Cyber Liabilities Into Deal Value

In today’s deal environment, cybersecurity can make or break an acquisition. Overlooking blind spots risks financial loss, reputational damage, and post-merger instability.

CRG International, LLC equips acquirers with the expertise and frameworks to identify hidden risks, safeguard integration, and preserve long-term deal value.

Partner with CRG to transform potential cybersecurity liabilities into a foundation for post-merger success.