M&A Cybersecurity

Cyber Due Diligence and Building Security after an Acquisition or Carve-out

Before the deal, we assess the target's security posture as a workstream in its own right. After the deal, we fill the CISO role until information security is in place in the acquired company or the carved-out entity.

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After the deal: two situations

Closing is where the work starts that a due diligence only prepares. What that work is depends on whether you have bought a company or carved out a business unit.

Building security in the acquired company

From closing, the acquired company sits within your scope. Its gaps are now your gaps, and the next group audit will cover it too. Often there is no named security function. We fill that role as a vCISO on a fixed-term basis or as Interim CISO and bring the company up to your requirements. The mandate is time-limited and ends with an end state agreed in advance: the role is filled internally or handed over to your group function.

Building from scratch after a carve-out

After closing, the carved-out entity keeps running on the parent's IT and security services under a Transitional Service Agreement (TSA) with a fixed expiry date. By then it needs its own ISMS, with its own policies, incident process and evidence. The deadline is contractual and does not move. We fill the CISO role. Your vCISO derives the ISMS in OdySecure from the parent's documents, such as contracts, network plans and process descriptions.

ReferenceCarve-out as Interim CISO: building up information security at an international mechanical engineering company.

What to expect from a Cyber Due Diligence

Independent expert assessment

A qualified, experience-based evaluation of the target's IT security posture. Not an automated scan, but thorough analysis by an experienced auditor.

Deal-relevant contextualization

Every finding is assessed in the M&A context. Is it a potential deal-blocker? Does it require immediate action post-closing? Or is it a long-term optimization? You get a decision basis, not just a deficiency list.

Prioritized recommendations

Concrete, actionable measures with clear timelines. From immediate pre-closing actions to strategic improvements in the first 12 months.

Risk identification with depth

Not just technical vulnerabilities, but also organizational gaps, IT service provider dependencies, license transfer risks, missing contingency plans, and compliance gaps (NIS-2, GDPR, industry-specific requirements).

Visually clear results

Reports with traffic light systems, spider charts, and executive summaries that integrate directly into your investment documentation.

Scalable for portfolio mandates

Standardized process delivering reproducible results across the entire portfolio. For investors and corporate groups with high transaction frequency.

More about M&A cybersecurity

Cybersecurity in M&A Transactions

Cybersecurity in M&A transactions is not a downstream IT question. It is a dedicated due diligence workstream alongside Financial, Legal, and Tax. Undetected vulnerabilities in the target can cause data breaches, compliance violations, and high follow-up costs after closing. In the worst case, they jeopardize the entire transaction.

Cybervize delivers an independent, experience-based assessment of your target's IT security posture, conducted by a Senior CISO. Reference: Support for several acquisitions with M&A cybersecurity assessments for an insurance company. The report gives you a qualified opinion, prioritized recommendations, and a clear assessment: What is a deal-blocker, what needs immediate attention post-closing, and where is the investment required.

Due Diligence
Risk Assessment
Post-Merger Integration

How a Cyber Due Diligence works

  1. 01

    Scoping & Engagement

    Joint definition of assessment scope and framework. Assessments per ISO 27001/27002, BSI IT-Grundschutz, DIN SPEC 27076, or your own investment framework.

  2. 02

    Document Analysis

    Review of IT policies, service provider contracts, SLAs, security documentation, and existing audit reports via the virtual data room.

  3. 03

    Interviews & Expert Calls

    Structured conversations with IT management, IT service providers, and where needed, target management. This reveals how security is actually practiced.

  4. 04

    Analysis & Assessment

    Consolidation of all findings, evaluation in M&A context (deal-blockers, immediate measures, medium-term needs), and quantification of investment requirements.

  5. 05

    Report & Recommendation

    Qualified report with overall assessment, prioritized recommendations, and a clear opinion on the target's cyber risk situation.

  6. 06

    Presentation & Handover

    Results presentation for your M&A team, investment committee, or board. Answering follow-up questions, integration into transaction documentation.

Frequently Asked Questions about M&A Cybersecurity Support

A Cyber Due Diligence is the assessment of a target company's information security before an acquisition or investment, as a workstream of its own alongside financial, legal and tax due diligence. It shows which security risks affect the purchase price and the integration. We assess the target against ISO 27001, BSI IT-Grundschutz or your own framework and classify each finding as a deal-blocker, an immediate post-closing measure or a medium-term need. The result is a report for your investment committee.

Cybersecurity risks are often only superficially covered in a standard IT due diligence. A dedicated cyber due diligence systematically evaluates the target's security posture, uncovers compliance gaps, and identifies risks that affect transaction value. The result is a qualified, independent opinion that feeds directly into your investment decision.

Depending on the target company and industry, assessments are conducted per ISO 27001/27002, BSI IT-Grundschutz, DIN SPEC 27076, or NIST CSF. We can also assess against your own investment framework. The methodology is jointly defined during scoping.

The report contains an overall assessment of the cyber risk situation, all identified findings with M&A-specific prioritization (deal-blockers, immediate post-closing measures, medium-term needs), an estimate of required investment, and concrete recommendations. Visually presented with traffic light systems and spider charts.

Missing or outdated security policies, inadequate access controls, dependencies on single IT service providers, missing contingency plans, license transfer risks at change of ownership, compliance gaps with NIS-2 or GDPR, and untested backups. The auditor's experience is critical to properly contextualizing these risks for M&A.

Yes. For investors and corporate groups with high transaction frequency, we offer a standardized process that delivers reproducible results across the entire portfolio. This makes assessments of different targets directly comparable.

Our vCISO on a fixed-term basis or an Interim CISO takes over implementation of the prioritised measures. They stabilise the acquired company's information security and steer the information security part of post-merger integration until the role is filled internally or handed over to your group function.

As long as nobody there is named, the gap sits within your scope. We fill the CISO role in the acquired company as a vCISO on a fixed-term basis or as Interim CISO and bring it up to your requirements. The mandate is time-limited and ends with an end state agreed in advance: the role is filled internally or handed over to your group function.

Its own ISMS, with its own policies, incident process and evidence. When the Transitional Service Agreement expires, the parent's services stop, and that date is fixed in the contract. We fill the CISO role and derive the ISMS from the documents that already exist, such as the parent's contracts, network plans and process descriptions, so that it is in place and evidenced by the cut-off date.

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For individual deals or ongoing portfolio mandates. We agree scope and framework together during scoping.

Request Cyber Due Diligence

Memberships, programmes and partnerships

  • BSI Allianz für Cyber-Sicherheit
  • CISPA Helmholtz-Zentrum für Informationssicherheit
  • TeleTrusT - Bundesverband IT-Sicherheit
  • IT Security Made in Germany - TeleTrusT