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Practical guide to preparing your company's cybersecurity to maximize its sale value
How to prepare your company to pass due diligence without digital surprises
In today's M&A landscape, cybersecurity has evolved from being a secondary technical consideration to becoming a determining factor in transaction value. For buyers, acquiring a company with unresolved vulnerabilities poses a very high risk, and the cost of remediation is unpredictable.
The exit readiness from the cybersecurity perspective is not only about avoiding security breaches. It is about building and demonstrating a trust architecture that facilitates post-acquisition integration and protects the value of the transaction. A poorly managed incident discovered during due diligence can drastically reduce the sale price or, in the worst-case scenario, completely derail the deal.
Here is the English translation with the code structure preserved: To avoid incidents during your company’s due diligence preparation, we recommend taking a look at this article with expert advice on how to prepare it.
Questions to ask for Exit Readiness in the field of cybersecurity
Question 1: Security policies and governance
The buyer will want to see if there is a formal information security policy. Good intentions are not enough: there must be documents, responsible parties, and procedures.
- Do you have a formal information security program or policy?
- Do you have written policies (access, data management, incident response)?
- Do you have prudent practices in line with size?
Beyond policies, you need to demonstrate that there is a governance structure in place to enforce them. Ensure that they are appropriate for the size and maturity of the company; a robust governance framework demonstrates control, something that the market values as much as growth.
Question 2: Risk and incident management
Investors know that no system is invulnerable, so one of the aspects they pay most attention to is how your company manages risk.
- Have you identified and managed IT risks and vulnerabilities?
- Do you keep track of incidents and breaches with proper management?
- Do you have incident response and disaster recovery plans?
Keep an up-to-date record of vulnerabilities and incidents, define a response plan, and test your disaster recovery procedures. An organization that documents, responds, and learns is an organization that inspires confidence.
Question 3: Controls, testing, and training
Security is not a state but a continuous process.
- Do you have regular testing documented (vuln scans, pentests)?
- Do you have basic controls in place (firewalls, encryption, backups, anti-malware, patches)?
- Do you provide training (phishing) to your team?
- Do you manage access based on the principle of least privilege and agile logins?
Operational controls are tangible proof that your security is working. Firewalls, encryption, backups, anti-malware, updated patches, and regular penetration tests are essential.
Added to this is an often overlooked factor: team training. The most frequent attacks, such as phishing, target individuals. Ensure your staff are aware of the risks and apply the principle of least privilege when it comes to access. In cybersecurity, internal culture is just as important as technology.
Question 4: Data protection and certifications
The protection of customer data is probably the most sensitive area during due diligence. If your company handles particularly sensitive data, make sure you can demonstrate additional controls commensurate with the level of sensitivity.
- Do you ensure customer data security with encryption at rest and in transit?
- Do you comply with the security requirements demanded by customers and prepare for or obtain certifications such as SOC 2 or ISO 27001?
Although not always essential, certifications such as SOC 2 or ISO 27001 provide external validation of your security practices and can significantly speed up the due diligence process. If your customers require specific security audits or requirements, document how you comply with them. Each piece of evidence reduces the perception of risk and strengthens your value proposition to the buyer.
Question 5: Product and third-party safety
In an increasingly interconnected environment, cybersecurity risks extend to suppliers and the product itself.
- Do you have a secure product infrastructure?
- Is your cloud properly configured and free of known critical vulnerabilities?
- Have you assessed third-party risks?
- Have you verified the security of your suppliers and cloud?
- Do you have contractual protections in place?
Evaluate the configuration of your cloud environments, review the security of your integrations, and demand contractual guarantees from third parties. A weakness in a provider or in the product infrastructure can compromise the entire operation. The maturity of your technology value chain will be part of the buyer's evaluation.
In this article, we talk in more detail about how to prepare your product, your software, and your team if you are thinking about selling your company. We go deeper into how to optimize the software, the infrastructure, and the development processes of organizations.
Conclusion: Turn security into a value proposition
In today's tech M&A market, a strong cybersecurity posture isn't just a requirement to pass due diligence; it's a competitive differentiator that can significantly increase your valuation. Buyers are willing to pay premiums for companies that demonstrate security maturity because they understand that this reduces transaction risk, accelerates integration, and protects the long-term value of their investment.
Investment in cybersecurity should not be viewed as a cost but as a direct investment in the exit value of your company. In a world where technological integrations are increasingly complex and cyber risks more sophisticated, buyers will pay for certainty, not promises.
Therefore, your goal should be to turn cybersecurity from a potential obstacle in the transaction into a compelling argument for why your company is worth the valuation you are seeking.
You can assess your company’s level of preparedness by completing our Security Exit Readiness checklist, the tool that will help you transform your cybersecurity posture into a competitive advantage and a value proposition in your next negotiation. Contact our advisors specialized in the sale of technology-sector companies and they will guide you with no obligation.
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