Can cybersecurity breaches threaten deal valuations?

Investors sharply reduce their post-close valuations of companies that have completed acquisitions when data breaches are revealed, according to a new survey of investors and analysts by Brunswick Group, a global critical issues advisory firm.

Brunswick’s third annual Data Valuation Survey also found that investors raise their post-deal valuations for companies that have demonstrated preparation for cybersecurity issues.

• Brunswick Group investor survey finds post-close M&A valuations cut by data breaches
• Most investors say they would lower post-close valuation if either party had a breach
• Half of surveyed investors would award higher valuation for companies working with security firms to reduce potential cyber risks