Wall Street Needs Cybersecurity Experts For Dealmaking, Says Report
Executives of big businesses and investment funds are reportedly tapping the cybersecurity industry while negotiating and mulling over deals.
Corporations want to ensure that prior to finalizing any acquisitions, the firm they are doing business with isn’t vulnerable to hackers, according to Bloomberg. It is also quite possible that companies wish to verify if a company is experiencing the aftermath of an undisclosed cyber attack.
Such a growing desire likely stems from Verizon’s recent purchase of Yahoo. The telecommunications company originally had cold feet after a 2014 hack that affected roughly 500 million Yahoo accounts was revealed years later. (RELATED: Federal Agency To Investigate Yahoo For Taking So Long To Publicize Massive Hack)
“Cybersecurity is not about getting technical, it’s about business impact, and ultimately valuations,” said Michael Bittan, head of Deloitte’s Cyber Risk Services unit in France, reports Bloomberg. “It will become a pillar of M&A [mergers and acquisitions] decisions.”
After initial reports that the cyber breaches may jeopardize the whole deal, Verizon ultimately agreed to go ahead with the agreement, albeit with a $350 million price reduction.
As technology, specifically the internet, becomes integrated into almost all aspects of society, so too will its impact on business. (RELATED: Report: Ransomware Cost Businesses $1 Billion In 2016)
“That trend will grow,” Grace Keeling, head of communications at the tech company Intralinks told Bloomberg. “We’ll see more companies killing deals or devaluing the target.”
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