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Cyber risks to consider when acquiring a manufacturing business
When Marriott International, one of the world’s largest hotel chains, discovered a data breach in 2018, following the acquisition of another hotel chain, it was a massive blow for the company. As a result of the hack, the credit card numbers, addresses, passport information and other sensitive details for up to 500 million guests had been compromised.
The breach exemplified a challenge from which businesses across industries can learn: Whether you are buying or selling, it’s paramount to consider cybersecurity during mergers and acquisitions.
An investigation of the Marriott incident revealed that one of the largest breaches ever of consumer data had not occurred overnight. It was traced back as far as 2014, two years before Marriott acquired the Starwood network, a family of hotels and resorts whose guest reservation database had been the victim of unauthorized access.
The large volume of personal details stolen through the Marriott breach made headlines, yet consumer-facing enterprises aren’t the only ones targeted by cyber criminals. Vulnerabilities in manufacturing businesses are particularly acute, despite attracting less mainstream attention. If unaddressed, legacy cybersecurity issues can cost their future owners dearly.
This story originally appeared in the November/December 2020 print edition of Middle Market Growth magazine. Read the full issue in the archive.