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Mergers can give rise to cybersecurity concerns

When businesses in Texas look to expand, they may want to pursue mergers and acquisitions to achieve their goals. By purchasing an existing, successful business, a company can acquire new technology and talent as well as bring a strong competitor to the same team. However, mergers and acquisitions can also come with an array of concerns related to cybersecurity. There are a few key issues for firms to keep in mind throughout the process in order to protect their security and achieve a successful, profitable merger.

One of the most common issues faced by businesses after a merger or an acquisition is a failure to complete thorough due diligence. Some firms may be excited by the opportunity to bring in new technologies or developments but fail to examine the company they are purchasing in full. This can include examining the technical aspects of the software, database system or other items being acquired as part of the merger. In many cases, companies may not thoroughly investigate how to secure their systems after the merger. In a 2016 study by a tech consulting firm, 40 percent of businesses reported that they uncovered serious security concerns after the acquisition was already complete.

In addition, data vulnerabilities can be a problem before, during and after the selling or buying of a business. Revealed or leaked data can compromise the final deal or allow another competitor to enter into the framework. When information is not secured, it can be very costly, especially when it is used to the advantage of other parties.

Even after a merger is completed on paper, the resulting process of integrating the two companies can give rise to serious security and other technical problems. That's why a business owner who's considering buying a company might want to work with a commercial law attorney.

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