Proactively address portfolio cybersecurity risks
Portfolio risk management is more important than ever as threats are becoming more complex and impactful. Both a perceived lack of security, and actual incidents themselves can impact the bottom line as well as the estimated value of a company.

The Challenge

Cybersecurity represents a risk to the worth of private equity firms’ portfolio companies and is becoming a key part of the valuation process, reflecting the rapid growth of risks related to cybercrime. In a recent survey conducted with Mergermarket, we found:
  • 77% of acquirers said the importance of cybersecurity at M&A targets had increased significantly over the last 24 months
  • 30% said compliance was the most critical issues at targets, while 17% cited lack of security staff 
  • 50% of respondents cited the costs of correcting existing issues as their most pressing concern

The Solution 

Acquirers are clear – cybersecurity is an important part of the deal. You need visibility into the risks facing your portfolio so you are prepared to maximize your investment when it comes time to sell. Do you understand how cybersecurity issues may be impacting the value of your portfolio? 

West Monroe’s Cybersecurity Advisory for Private Equity (CAPE) solution provides your firm with critical, specialized oversight into how your portfolio companies are dealing with security. Working like your other expert operating partners in IT and finance, West Monroe’s dedicated experts will uncover the risk to each of your investments and identify areas where you should exude influence to direct better security practices through ongoing assessments, with continued guidance and recommendations. 

The Impact

Your CAPE program will be tailored to your operating model and allow you to:
  • Identify the largest risk: Our team can quickly assess the risk profile for individual companies through targeted discussions with the portfolio companies.
  • Standardize terms and establish baselines: We work with you to define standards by which your investments can be evaluated, allowing for quick assessments of where to invest time or money to ensure the appropriate level of attention is paid to security.
  • Increase awareness and communications: Our security experts will regularly follow up with the individual companies to review progress on security initiatives, identify changes that impact their security profile, and pro-actively identify risks to value.
  • Provide access to world class security professionals: As an extension of CAPE, our resources can be engaged by individual portfolio companies for in-depth security assessment, strategy and execution to proactively reduce operational risks.


Why West Monroe Partners?

Our cybersecurity team brings a blend of holistic strategy and implementation experience along with deep understanding of private equity transactions and ownership. We have conducted more than 120 security diligences, which provides us with the knowledge to identify the biggest risk to your investment and help monitor your portfolio. That’s our uncommon blend.

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