Want to be acquired? Get your cyber security in order!
Washington Business Journal Senior Staff Reporter, Jill Aitoro hosted a panel of cyber experts Feb. 26 at Crystal Tech Fund in Arlington, VA.
The panel noted that how well a company has locked down their systems and data will have a direct effect on how much a potential buyer is willing to shell out for an acquisition — or whether a buyer will even bite in the first place.
Howard Schmidt, formerly CISO at Microsoft recalled ‘”We did an acquisition one time — about $10 million. It brought tons of servers, a big IT infrastructure, when all was said and done, it cost more than $20 million to rebuild the systems that had been owned by criminals and hackers for at least two years. That’s a piece of M&A you need to consider.”
Many private investors are doing exactly that, calling in security companies to assess a target company’s cyber security posture before making an offer. In some cases, the result will be to not invest at all, with the venture capitalist telling a company to “get their act together and then call back”.