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