M&A Physical Security: 5 Steps for a Smooth and Secure Transition

A shocking 50-90% of mergers and acquisitions (M&As) fail to achieve their intended goals. Even when a merger is successful financially, physical security risks are often overlooked during the transition. This stems from a lack of visibility into the acquiring organization’s physical security systems and the absence of a central platform to manage the integration process.

Without a clear understanding of the acquiring company’s physical security systems (cameras, access control, alarms, etc.), it’s difficult to plan an effective integration. You’re essentially trying to fit puzzle pieces together without seeing the whole picture.

To ensure a successful merger, it is crucial to prioritize the accountability and seamless integration of physical security systems. Here are five actionable tips to protect assets, optimize operations, and maintain physical security as a top priority throughout the M&A process:

Table of Contents

• Understand the new security landscape
• Conduct a comprehensive risk assessment
• Streamline systems integration
• Prioritize incident response readiness
• Embrace a Proactive Security Posture

1. Understand the new security landscape

Mergers and acquisitions create seismic shifts in your security landscape. Consider CVS Health’s acquisition of Signify Health. This merger instantly added a network of over 10,000 clinicians across 50 states to CVS Health’s security responsibility—a massive expansion of offices, warehouses, retail sites, and more.

Expanding your physical footprint is just the start of your challenges. Even with meticulous planning, a major hurdle emerges: you can’t protect what you can’t see.

Take the example of a large healthcare provider acquiring a medical equipment supplier. Overnight, they must secure not only their existing facilities but also the acquired company’s physical locations, such as offices, warehouses, and distribution centers. This sudden amalgamation of physical assets significantly alters their security landscape.

If the security team lacks complete visibility, they could overlook vulnerabilities that compromise the safety of employees, assets, and sensitive information. This lack of oversight could lead to unauthorized access, breaches, or other security incidents, putting both organizations at risk.

Fortunately, there are actionable steps to address these visibility challenges in M&As, including:

1. Early awareness: Proactively assess the combined security landscape to pinpoint potential risks.

• Strategic planning: Develop a clear plan for integrating systems, ensuring seamless operation, and maximizing security.
• The right tools: SiteOwl’s centralized visual interface streamlines this process, helping you map your entire security infrastructure. This allows you to identify risks early, facilitate integration, and ensure a more secure transition.

2. Conduct a comprehensive risk assessment

Too often, organizations learn the hard way about the critical need for physical security due diligence during mergers and acquisitions. The acquiring company may inherit outdated systems, incompatible technologies, or hidden security gaps. Without a thorough assessment, these vulnerabilities create major risks for the combined company.

Too often, organizations learn the hard way about the critical need for physical security due diligence during mergers and acquisitions. The acquiring company may inherit outdated systems, incompatible technologies, or hidden security gaps. Without a thorough assessment, these vulnerabilities create major risks for the combined company.

Conducting a thorough physical security assessment early in the merger process is crucial.
Here are a few proactive steps to consider:

1. Identify key vulnerabilities: Focus on areas like access control, aging infrastructure, or system compatibility.

• Revise incident response plans: Adjust your strategies to address the expanded operational scope and potential new threats.
• Leverage expertise: If your team’s expertise doesn’t cover the merged environment, consider external assessments.

SiteOwl offers a Physical Security Assessment tool that helps in identifying areas for improvement, recognizing potential risks, and providing actionable steps to enhance your security posture. It’s not just about avoiding post-merger surprises; it’s about making informed decisions to protect your investment and keep your operations running smoothly.

Merging mismatched security systems is a major logistical and financial headache. In the chaos of a merger, a critical question is often overlooked: how will people physically access the facilities they need?

Let’s say a large logistics company with 10,000 employees across numerous locations acquires a regional trucking firm. Incompatible access control systems? That means the cost of new badges, system updates, and rebranding could easily exceed $50,000 – $100,000!

The traditional scramble for compatibility is a costly mess. Trying to force systems to work together leads to expensive band-aid solutions.

How to avoid this mess:

1. Early assessment: Get ahead of the problem! Map out the security landscape of both companies, noting all access systems, potential conflicts, and outdated hardware.
2. Strategic planning: Don’t just react. Create a detailed plan for integrating access control, making sure critical facilities are operational from day one.
3. Standardization: One set of clear access policies and procedures across all locations reduces confusion and security risks.
4. Technology tools: A tool like SiteOwl gives you centralized control and that essential visibility across your expanded organization.

4. Prioritize incident response readiness

While systems are integrating, incident response can’t become an afterthought. Your plan must evolve alongside the newly merged organization. Failing to prepare leaves you dangerously exposed during a security event.

Consider this sobering fact: In 2020, the average cost of a breach in the pharmaceutical industry was $5.06 million – significantly higher than the global average.  For a major company undergoing a merger, neglecting security integration can create vulnerabilities that lead to such costly incidents. Imagine unauthorized individuals accessing sensitive research data or other critical areas due to overlooked gaps!

To protect yourself, a proactive incident response strategy is vital. However, without complete visibility into your physical security landscape, your response might always be one step behind – a dangerous game of roulette with your company’s safety.

5. Embrace a Proactive Security Posture

Once the initial merger dust settles, the long-term work of securing your expanded organization begins. Complacency now puts everything at risk. A proactive security posture is crucial for protecting what you’ve built.

Why ongoing vigilance matters…

1. Evolving threats: Mergers mean changes. New staff, shifting access needs, and a changing security landscape. Outdated plans leave you wide open to exploitation.
2. Legacy systems: Inheriting older systems during a merger creates vulnerabilities. Regular assessment and targeted upgrades are essential to plug those security gaps.

• Maintenance & lifecycle management: Neglect leads to costly breakdowns when you can least afford them. Proactively managing your security infrastructure ensures reliability and protects your investment.

Having a centralized, real-time view of your physical security infrastructure greatly simplifies these challenges. This single source of truth empowers you to make data-based decisions and stay ahead of potential threats.

Conclusion: Secure your merger with SiteOwl

Mergers are complex, and physical security can’t be an afterthought. SiteOwl’s insights and platform give security leaders the tools to integrate systems, proactively manage risks, and maintain resilience throughout the entire process. By following these five steps, you’ll ensure a smooth transition and robust security – both during the merger and in the years to come.

Ready to take the next step?Download SiteOwl’s eBook, “Convergence & Control: Navigating Physical Security in the Wake of M&A.” Arm yourself with the strategies and resources to protect your organization and leverage the M&A process to strengthen your overall security posture.