Importance of Encryption in Data consolidation during Mergers and Acquisitions

There are several concerns for data security during mergers and acquisitions. Say, when a larger company A is buying a smaller company B, the following could be issues that need to be addressed depending upon the nature of the companies involved.

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The Importance of Encryption in Data Consolidation in Mergers and Acquisitions

The ownership/sharing profile of data may change significantly in such a situation. So, keeping sensitive information encrypted in the new environment is beneficial. Access can be granted selectively to files and folders as required after actual migration/transfer of control is accomplished.

An Example of Encryption for Data Consolidation 

Changing Personnel & Layoffs

Say the files of Bob from company B are to be transferred to an yet unknown employee of company A as a result of the acquisition (Bob may be let go). So, if ownership of Bob’s files are to be temporarily transferred to some individual/admin in A’s domain, it is safer to keep all files encrypted and ensure only no unnecessary sharing/exposure takes place.

  • Data classification and data security policies in company A can be more stringent and complex as compared to that of company B. So, it may be deemed safer to encrypt data at source and transfer it in encrypted form before “classification” and appropriate security/data-access policies are enforced.

 

  • Data integrity, i.e., ensuring data is not altered/corrupted, is an extremely important concern while data migration. This aspect is made easy if the data is encrypted at source since data integrity checks are an integral component of any data encryption framework/algorithm. Encryption basically renders data tamper-proof and any such attempts can be detected with ease. So, encrypting data makes audit/reporting much easier and convincing.
    • Additional features to ensure/verify chain of custody can also be developed if required.
The Importance of Encryption in Data Consolidation in Mergers and Acquisitions