In today’s health care landscape, cybersecurity is not only an operational concern — it is quite literally a dealbreaker in corporate transactions. For digital health companies eyeing growth through mergers and acquisitions (M&A), cybersecurity due diligence is now a deal-defining factor. Increasingly, buyers are demanding rigorous proof of HIPAA compliance, a mature cybersecurity program, and an articulate explanation of any cybersecurity incidents and how the target handled them. Weaknesses in any of these areas can quickly turn a promising opportunity into a missed one.
Cybersecurity Due Diligence Is Now Deal Diligence
A company’s cybersecurity posture directly impacts valuation, closing timelines, and integration. Buyers are not only reviewing documentation, they are assessing historical vulnerabilities, breach response protocols, and the strength of cybersecurity governance. If risks surface late in the due diligence process, deals can fall through or valuations may be significantly reduced. Worse still, buyers may inherit undisclosed weaknesses, exposing these buyers to post-close litigation, regulatory fines, and reputational damage.
Forward-thinking CEOs are…
