Not something that springs to mind when thinking about your exit…
But I know first-hand of a UK engineering company that recently had its exit plans completely fall apart at the last minute – due to a serious data breach.
This was triggered by lax cybersecurity. Now it might be an extreme case, but acquirers are increasingly scrutinising cybersecurity and compliance. Any vulnerabilities and gaps can negatively impact your valuation – or derail your exit altogether.
If you’re a business owner planning your exit in the next few years, then learn from the mistakes of others 🙂
Get ahead of the game by implementing robust cybersecurity protocols:
✔️ Assess your risk profile. Work with experts to identify vulnerabilities in your systems, data storage and team practices. Develop a plan to address any gaps.
✔️ Implement multi-layered defences. Use advanced tools like AI-enhanced threat detection and 24/7 monitoring to create near-impenetrable barriers against attacks.
✔️ Control access. Use strict access controls and multi-factor authentication to limit entry points for attackers.
✔️ Train your staff. Educate employees on cybersecurity best practices through regular training. Human error is absolutely one of the biggest risks!
✔️ Backup critical data. Make certain you can restore data quickly if your systems are compromised.
✔️ Create an incident response plan. Have protocols in place to contain, investigate and recover from any potential breaches. And consider cyber insurance policies to mitigate risks.
Position your company for maximum value upon exit. A proactive cybersecurity strategy shows acquirers you take this seriously and will support a strong valuation.
#SME #M&A #cybersecurity #business #exitlaunchpad