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A Growing Area of Importance in M&A Due Diligence

A Growing Area of Importance in M&A Due Diligence

The coronavirus pandemic brought no shortage of challenges to the economy. In fact, we’re still seeing the aftershocks of this global phenomenon.

Because of these challenges, it’s critical that companies have a comprehensive merger and acquisition due diligence process. This process will help you uncover any possible risks that can negatively impact a company’s EBITDA, and protect against post-transaction liabilities.

A Growing Trend

Ever since the pandemic, there has been one trend skyrocketing around the world for businesses of all sizes and in all industries. And, this trend is showing no signs of slowing down.

In fact, the United Stated Treasury Department reported in 2021 that the average losses per month for one type of event in this category was over $100 million. Do you know what trend we’re talking about?

It’s cybersecurity, of course! And, the numbers above are related to ransomware attacks. While you usually only hear about cyber attacks on enterprises in the news, ransomware groups have been known to target small and midsize companies in the midst of an acquisition.

Cybersecurity is One of Many Important M&A Trends

Cybersecurity is an important trend. However, it is just one of many areas of growing importance during the M&A process. Feel free to learn more about this trend and others in our latest resource: Navigating the Due Diligence Process in a Hardened Insurance Market.

Contact Burnham WGB Commercial Risk Advisors

You’ll want to involve your insurance advisor early if you’re planning to navigate the M&A process. The best time to involve them is before a letter of intent is drawn. That way, they can help protect you against potential liabilities and bolster the value of the asset you’re thinking about acquiring. Connect with a Burnham WGB Commercial Risk Advisor to learn more.