40% of acquiring companies engaged in a merger and acquisition proceeding said they discovered a cybersecurity problem during the post-acquisition integration of the acquired company. Due Diligence could have reduced those statistics according to Digitpol.
Digitpol, an international investigation company which specializes in corporate investigations, fraud investigations, investigations of corruption and commercial espionage is warning the business community of the importance of Due Diligence.
In 2017, according to Thomson Reuters, there were more mergers and acquisitions than in any other previous year. They include the merger between Telecom giant CenturyLink and Level 3 valued at $34B, Intel acquired Mobileye which was worth $15.3B and the $13.7B acquisition of Whole Foods by Amazon. However, even though 2017 was a big year for mergers and acquisitions, due to the lack of due diligence it was also reported that 40% acquiring companies engaged in a merger and acquisition proceeding said they discovered a cybersecurity problem during the post-acquisition integration of the acquired company.
Due diligence is important in business, especially when looking to merge with another business or acquire that business. Through due diligence it allows a business to check on data privacy, cybersecurity, data breach risks, and financial problems. Unfortunately, post-acquisition problems are far too common and very costly. One serious example of how the lack of due diligence was Verizon’s discovery of a prior date breach at Yahoo.
This highly publicized example of the lack of Due Diligence resulted in the deal nearly being called off and then a $350 million reduction in the price paid by Verizon. It also resulted in a $35 million penalty by U.S. Securities and Exchange Commission (SEC) and $80 million to settle lawsuits by unhappy shareholders.
Digitpol, an international investigation company can help all types of businesses to avoid serious financial and security problems before considering merging or acquiring. Through their professional approach, they can launch a major investigation and provide a detailed report to avoid serious financial loss or the risk of fines.
To learn more about Digitpol and how they are helping businesses looking to acquire or merge with another company, please visit https://digitpol.com/
About Digitpol
Digitpol, an international investigation company specializes in corporate investigations, fraud investigation, investigation of corruption and commercial espionage. Digitpol’s investigations provide insight to clients undertaking new and significant projects, whether underwriting an IPO, considering a merger or acquisition, working with a new partner, selling a business or participating in a joint venture or entering a new marketplace.
Digitpol provides companies with a comprehensive suite of due diligence and business intelligence possibilities enabling their clients can better protect their investments and make critical business decisions with confidence. Whether you are evaluating investments, entering new markets, vetting third parties or satisfying regulatory requirements, Digitpol’s unmatched investigative capabilities, worldwide presence, and long-standing reputation will save you time and risk.
Digitpol’s risk-based approach allows us to conduct the appropriate level of due diligence and when required we deploy traditional surveillance. We will go anywhere!
About Digitpol
Digitpol is one of the world’s leading providers of risk and Investigation services.
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