Risks of cyber attacks will push cyber security up the M&A priority list

Companies with robust cyber-security measures will be valued more highly and face fewer regulatory challenges than those with weak security practices, which may struggle to close deals. This shift will drive increased investment in cyber-security due diligence and integration strategies, ensuring that cyber security is a top priority in the M&A process. 

This emphasis on cyber security in the M&A market will be driven by the increasing frequency and sophistication of cyber threats. As cyber attacks become more efficient and damaging, the potential risks associated with acquiring or integrating a company with low cyber security grow exponentially. 

Regulatory bodies are also tightening their scrutiny on data protection and national security (NIS2, CRA, etc.), making robust cyber-security practices essential for gaining approval for proposed deals. 

Additionally, the financial and reputational damage from a cyber incident can be immense, making it crucial for the buying side to ensure their targets have efficient defences in place. This extended focus on cyber security will help protect assets, maintain stakeholder trust and ensure a smoother integration process.