Cyber risk complacency could doom M&A deals: study

[SINGAPORE] Cyber security breaches pose a real threat to merger-and-acquisition (M&A) deals, yet businesses are showing a remarkable level of complacency when it comes to dealing with this risk, says a new global study by international law firm Freshfields Bruckhaus Deringer.

Ninety per cent of the 214 global dealmakers surveyed said they believed cyber breaches would result in a reduction in deal value, while 83 per cent said they believed a deal could be abandoned if cyber security breaches were identified during deal due diligence or mid-transaction.

Yet, many still do not evaluate cyber risk in the same way as other risks that can undermine corporate value. Over three-quarters (78 per cent) of respondents said cyber security was not analysed in great depth or specifically quantified as part of their M&A due diligence process.