M&A Cyber Due Diligence

Know What You're Buying
Before You Sign

Every acquisition inherits the target's security posture—the exposed credentials, the leaky APIs, the forgotten subdomains. DataShielder reveals these risks before they become yours.

$4.88M
Average cost of a data
breach in 2024
73%
Of acquirers say cyber
risk is a top M&A concern
10x
Costlier to remediate
post-close vs. pre-close
60%
Of acquirers encountered
undisclosed cyber issues

The Deal Looks Great on Paper

Financial due diligence is thorough. Legal review is airtight. But what about the target's external security posture? A single data breach post-close can erase the value of the entire acquisition.

Traditional Cyber Due Diligence Is Broken

Questionnaires and self-assessments rely on the target telling you the truth. DataShielder shows you the truth.

Traditional Approach

  • Security questionnaires the target fills out themselves
  • Compliance certifications that may be outdated or narrow
  • Point-in-time assessments that miss ongoing exposure
  • Requires target cooperation—delays and information asymmetry
  • Relies on what the target knows (or admits) about their posture

With DataShielder

  • Independent, external assessment of the target's real posture
  • Discovers exposed secrets, API keys, and credentials in production
  • Continuous monitoring throughout the deal lifecycle
  • No target cooperation needed—scan their public-facing assets
  • Evidence-based findings you can use in negotiations

You Don't Have Their Source Code.
Neither Do Attackers.

Pre-acquisition, you rarely have access to the target's codebase, infrastructure, or internal security reports. That's exactly why DataShielder's approach works—we assess what's visible from the outside, just like a threat actor would.

No Access Required

Point us at the target's domains. We discover subdomains, endpoints, and assets automatically.

Confidential Assessment

Assess the target without tipping them off or requiring their participation in the process.

Board-Ready Reports

Clear, prioritized findings with severity ratings that deal teams and boards can act on.

What a Typical Assessment Reveals

Critical

AWS access keys exposed in client-side JavaScript on staging subdomain

High

Internal API endpoints returning customer PII without authentication

High

Database connection strings hardcoded in publicly accessible config files

Medium

Third-party analytics tokens with write permissions in page source

Medium

Forgotten staging environments with default credentials indexed by search engines

Real findings. These are the kinds of exposures we routinely discover in target company assessments—issues that questionnaires never surface.

Cyber Due Diligence at Deal Speed

DataShielder integrates into your M&A process at every stage—from initial screening to post-close integration.

Phase 1

Pre-LOI Screening

Run an initial external scan of the target's domains before even signing a letter of intent. Identify red flags early so you can walk away or factor risk into your offer price.

  • Automatic subdomain discovery
  • Public-facing vulnerability scan
  • Exposed secret detection
  • Initial risk score for deal team
Phase 2

Due Diligence Deep Dive

During formal due diligence, conduct a comprehensive security assessment. Generate detailed reports that quantify cyber risk for deal valuation and negotiation leverage.

  • Full attack surface mapping
  • PII and credential exposure audit
  • Compliance gap analysis
  • Board-ready risk assessment report
Phase 3

Deal Negotiation

Use concrete findings as leverage in price negotiations. Require specific remediations as conditions to close, or adjust the purchase price to account for remediation costs.

  • Quantified remediation cost estimates
  • Risk-adjusted valuation inputs
  • Specific conditions for close
  • Indemnification clause support
Phase 4

Post-Close Monitoring

After closing, maintain continuous monitoring of the acquired entity's digital assets during integration. Catch new exposures that emerge as systems are merged.

  • Continuous scanning during integration
  • New exposure alerts in real-time
  • Integration risk tracking
  • Remediation progress validation

Built for Every Seat at the Deal Table

Whether you're running the deal, advising on it, or inheriting the risk—DataShielder gives you the cyber intelligence you need.

Private Equity Firms

Assess portfolio targets before investment. Quantify cyber risk as a deal variable, not an afterthought.

Corporate Development

Screen acquisition targets independently. Present security findings alongside financial and legal due diligence.

M&A Advisory Firms

Differentiate your practice by offering cyber due diligence. Add concrete risk data to your client deliverables.

CISOs & Security Teams

Get ahead of integration risks. Know what security debt you're inheriting before Day 1.

Legal & Compliance Teams

Identify regulatory exposure in the target's digital assets. Inform reps, warranties, and indemnification clauses.

Board & Investment Committee

Clear, non-technical risk summaries that inform go/no-go decisions and purchase price adjustments.

"A questionnaire asks what they know.
DataShielder shows what they missed."

"You wouldn't skip financial due diligence.
Why skip cyber?"

"Their breach becomes your breach
the moment you close."

What a Deal Looks Like With DataShielder

01

PE firm evaluating a SaaS target at $200M valuation

Target reports SOC 2 compliance and "no known breaches." Standard questionnaire responses look clean.

02

DataShielder scan reveals 14 findings across 47 discovered subdomains

Three critical issues: exposed AWS keys on a staging server, a forgotten admin panel with default credentials, and an API endpoint returning unmasked customer SSNs.

03

Deal team uses findings in negotiation

Remediation estimated at $2.3M. Purchase price adjusted downward. Specific remediation milestones added as closing conditions. Indemnification clause expanded to cover pre-existing exposures.

04

Post-close: continuous monitoring validates remediation

DataShielder tracks remediation progress and catches two new exposures introduced during system integration—flagged and resolved before any impact.

Result: The acquirer closed with full visibility into the target's security posture, negotiated a better price, and prevented post-close surprises.

Why Deal Teams Choose DataShielder

Deal-Speed Results

Initial findings within hours, not weeks. Full assessment ready for your deal timeline.

No Target Cooperation

Run assessments independently using only public-facing digital assets. No NDAs needed to start.

Negotiation-Ready Reports

Prioritized findings with severity ratings, remediation estimates, and clear language for deal teams.

100+ Secret Types

Detect exposed API keys, database credentials, cloud tokens, PII, and more across all target assets.

Full Attack Surface

Automatic subdomain discovery finds assets the target may not even know about—shadow IT, forgotten staging environments.

Discreet & Confidential

Passive scanning that won't disrupt the target's operations or alert their team to the assessment.

Don't Inherit Their Risk Blindly

Every acquisition is a security decision. Know what you're buying before their vulnerabilities become your liabilities. Start assessing your next target today.

No source code access needed • Results in hours • Confidential assessment