Market Spotlight: Cybersecurity

29 September 2017

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Cyberattacks and data breaches have become a constant threat in 2017 as companies from across industries have found themselves targeted by hackers. While some cyberattacks make headlines, such as the recent Equifax breach that affected an estimated 143 million consumers, there are still many that go unnoticed. In fact, cyberattacks are on the rise this year, making it more likely that a company will experience such a threat at some point. For dealmakers, this means evaluating a target company’s cybersecurity infrastructure is an increasingly important element of due diligence.

In order to understand the concerns and challenges of cybersecurity in a dealmaking environment, Donnelley Financial Solutions commissioned Mergermarket to interview global practitioners from across the corporate and private equity communities.

Key findings include:

  • Respondents were unanimous in their belief that the importance of cybersecurity has increased in the past 12 months, with 44% saying significantly so.
  • More than half (52%) of respondents say 26% - 50% of the companies they have targeted for an M&A deal have experienced data security breaches at some point in the past 24 months.
  • Some 76% of respondents say that the consumer and e-commerce sector will be the most targeted by cybersecurity threats in the coming 12 months.