Cyber risk management in manufacturing M&A

Every billion-dollar merger is one undetected vulnerability away from becoming a high-stakes gamble. In industrial manufacturing, the race for innovation has made cybersecurity not just a safeguard, but a decisive competitive edge. As deal values surge across transportation, logistics, and aerospace, companies face a digital landscape where cyber risks can instantly erode millions in strategic investments.

Some key challenges in industrial manufacturing mergers and acquisitions (M&A) include:

• Operational technology (OT) or information technology (IT) convergence: Legacy systems, once isolated, now face new vulnerabilities as operational and information technologies merge.
• Supply chain exposure: Interconnected partners multiply cyber entry points, often with inconsistent security standards.
• Technical debt: Outdated systems and rapid tech adoption create patchwork solutions, increasing risk.
• Internet of things (IoT) and sensor limits: Many devices lack the power for robust security, leaving gaps.
• Intellectual property threats: Industrial espionage, especially from state actors, is on the rise.

To protect deal value, companies must act early, deploying compromise assessments to detect hidden threats, forming dedicated cybersecurity teams, and embedding cyber diligence from pre-deal to post-close. Ongoing monitoring and a strong cybersecurity culture are essential to defend against evolving risks. 

Download our latest paper, Deal value up, cyber stakes higher: Securing M&A in the age of smart manufacturing, for actionable strategies to secure your investments and accelerate innovation.