Prepare Now or Be Left Behind: Why Cyber Risk Is the Next Financial Due Diligence
Cyber risk is a business and financial risk that can rewrite a deal, change a valuation, or end a company.
Everyone says they take cybersecurity seriously now. They talk about risk. They add a line for it in due diligence. They even ask the token question, “Do they have a cybersecurity program?”
But let’s be honest, most still see it as an IT thing. They think the mindset is changing. It isn’t.
The truth is, cyber risk is still the biggest blind spot in business today. It’s not a tech problem. It’s a business and financial risk that can rewrite a deal, change a valuation, or end a company.
I’ve seen it firsthand.
A grocery chain once came to us as a prime acquisition target. Strong numbers, steady growth, and ten million loyal customers in their club card program. On paper, a dream deal.
Then we looked behind the curtain.
That massive customer database? Completely unsecured. Their corporate office was located in a small town, where the windows were often left open at night. We confirmed it during our physical security review. Even worse, the entire operation, including their data center, ran on fuses from the 1930s. The data center itself was located in a converted garage, cooled by two air conditioners purchased from a local hardware store, such as Home Depot.
No spreadsheet or M&A checklist would have caught it. And yet, that’s what so many buyers still rely on.
That’s the illusion we live with — that asking the right questions is the same as getting the right answers.
It isn’t.
Buyers today are inheriting risks that insurance won’t cover. Sellers are assuming those same risks will stay hidden. Both are gambling with trust, value, and reputation.
When you prepare a company for sale, you fix what shows — the books, the brand, the building. That’s curb appeal. In today’s market, having cybersecurity under control is the new curb appeal.
The smart money isn’t asking if you’ve been hacked. They’re asking if you can prove you’re ready.
PS: In 2026, this won’t be optional. Cyber risk will sit alongside the financials in every deal room. The question is — will you be ahead of it, or explaining it?
For Buyers: If you want to know what’s really behind the numbers before the deal closes — start the conversation.
For Sellers: If you want to protect valuation and avoid post-sale surprises — now’s the time to prepare.
By Mike Fitzpatrick, Founder & CEO, NCX Group, Ponemon Institute Fellow | 24 Years in Cyber Risk
Repost from LinkedIn – https://www.linkedin.com/pulse/prepare-now-left-behind-why-cyber-risk-next-financial-fitzpatrick-idz4f/
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If it’s been more than a year since your last cybersecurity assessment—or if you’ve never done one—now is the time.