Here are the key steps involved in cyber M&A due diligence:

1. Identify Cybersecurity Risks

   Start by identifying the potential cybersecurity risks associated with the target company. This includes assessing their data protection practices, information security policies, incident response capabilities, and compliance with relevant regulations and industry standards.

2. Review Security Policies and Procedures

   Evaluate the target company's security policies, procedures, and practices. Examine their security frameworks, access controls, encryption practices, patch management processes, employee training programs, and other relevant security measures. Assess the effectiveness and adherence to these policies.

3. Assess Network Infrastructure and Systems

   Review the target company's network infrastructure, including hardware, software, and cloud-based systems. Evaluate their configuration management practices, network segmentation, firewall rules, intrusion detection/prevention systems, and vulnerability management processes. Identify any weaknesses or vulnerabilities that may pose risks.

4. Evaluate Incident Response Capabilities

   Assess the target company's incident response capabilities and processes. Review their incident response plans, incident management procedures, and team structure. Evaluate their ability to detect, respond, and recover from cyber incidents, including their incident reporting mechanisms.

5. Assess Data Privacy and Compliance

   Evaluate the target company's data privacy practices and compliance with applicable data protection regulations, such as GDPR, CCPA, or industry-specific requirements. Assess the data protection policies, consent mechanisms, data subject rights management, and data breach notification processes.

6. Conduct External Threat Assessment

   Consider conducting external threat assessments to identify any ongoing or past security incidents, breaches, or cyber attacks that may have impacted the target company. This may involve using external threat intelligence sources or engaging with cybersecurity firms specializing in threat assessments.

7. Evaluate Third-Party Relationships

   Assess the target company's relationships with third-party vendors, contractors, and service providers. Review their vendor management processes, contracts, and security requirements imposed on third parties. Identify any potential risks arising from these relationships.

8. Engage Technical Experts

   If needed, involve technical experts, such as cybersecurity consultants or penetration testers, to perform in-depth assessments of the target company's systems, applications, or infrastructure. These experts can provide detailed insights into vulnerabilities and potential risks.

9. Review Legal and Regulatory Compliance

   Evaluate the target company's compliance with relevant laws and regulations related to cybersecurity, data protection, and privacy. Consider any potential legal or regulatory liabilities associated with non-compliance.

10. Report and Mitigate Risks

    Prepare a comprehensive report detailing the findings of the cyber due diligence assessment, including identified risks, vulnerabilities, and potential impacts. Provide recommendations for mitigating the risks and improving the target company's cybersecurity posture.