How do mergers and acquisitions affect an organization’s cybersecurity compliance posture?

Mergers and acquisitions can have a significant impact on an organization’s overall compliance posture. When two companies come together, it is crucial to ensure that all legal and regulatory requirements are met. Changes in ownership structure, operations, and the addition of new business units can introduce new compliance risks and challenges. It is important for organizations to conduct thorough due diligence to identify any potential compliance issues in the target company and develop a comprehensive integration plan to harmonize compliance practices across the merged entity. Failure to effectively manage compliance during a merger or acquisition can result in legal liabilities, financial penalties, reputational damage, and operational disruptions.