When companies buy each other, cybersecurity teams inspect the target for past breaches, vulnerabilities, and security gaps. Like a home inspector flags structural problems that lower the price, a cyber audit finds security issues that let buyers negotiate better terms or demand fixes before closing.
So cyber in, in the context of an M&A deal is all about risk-based, uh, identi— or risk identification throughout the transaction. So in the due diligence phase, you're, you're really examining the targets of the acquisition. You're looking for major red flags, prior incidents, any kind of risks that once the transaction closes, you're going to have to clean up or otherwise remediate.
And simplistically, could we think about this very simplistically as like a home inspection? Yeah, you make an offer, initial offer to buy a house. You have that 4 or 5 hour home inspection. You get a bunch of findings and then you decide like, hey, how much am I going to reduce the price for this? Yeah, exactly.
