In the world of business, mergers and acquisitions (M&A) are common occurrences that
help companies grow and expand their operations. However, when companies merge or
acquire another business, they must conduct due diligence to ensure that they are making
an informed decision and minimizing potential risks. One critical aspect of due
diligence is securing financial documents, which contain sensitive information that
should be protected from unauthorized access.
Securing Financial Documents
Financial documents such as balance sheets, income statements, cash flow statements, and
tax returns contain confidential information about a company's financial performance and
status. Such information is valuable to investors and competitors alike, making it
vulnerable to theft or misuse. If these documents are not handled securely, they can be
accessed by unauthorized individuals who may use the information for malicious purposes
such as identity theft, fraud, or insider trading.
To prevent such scenarios, it is crucial to secure financial documents during the M&A
due diligence process. We created HelpRange to help you satisfy this goal, here are some
essential steps to follow to ensure the security of
Limit access to financial documents
Only authorized individuals should have access to financial documents. This includes the
parties involved in the M&A deal and their advisors. Access should be granted on a
need-to-know basis, and all individuals who access the documents should be required to
sign a non-disclosure agreement (NDA) to ensure that they do not disclose the
information to anyone outside of the M&A deal.
Use secure document sharing tools
Financial documents should be shared using secure document sharing tools that use
encryption to protect data in transit and at rest. Such tools provide an extra layer of
security that ensures that only authorized individuals can access the documents.
Set up document controls
Document controls can be used to limit the usage of financial documents. For example,
you can restrict printing or copying of documents to prevent unauthorized distribution.
Document controls can also be used to monitor who accesses the documents and when,
providing a record of document usage.
Implement data retention policies
It is essential to have data retention policies in place to ensure that financial
documents are not retained longer than necessary. This helps to minimize the risk of
sensitive information falling into the wrong hands. Data retention policies should
specify the length of time that financial documents should be retained and how they
should be securely destroyed when no longer needed.
Track Your Document
You should keep track of who you share your pitch deck with and when. This can help you
identify any unauthorized use or distribution of your pitch deck. You can use tools such
as HelpRange to track who has viewed your document and when.
In conclusion, securing financial documents during M&A due diligence is critical to
protect the sensitive information contained in them. Following the steps outlined above
can help to ensure that financial documents are accessed only by authorized individuals
and protected from unauthorized access, distribution, or retention. By securing
financial documents, companies can minimize the risks associated with M&A deals and make
informed decisions that drive business growth and success.