Exploring the Complicated Business of Protecting Data During a Company Merger

Business data security during company merger with IT systems and access controls

When two companies merge, a lot needs organizing. Employees need to understand their new roles, departments may be restructured, and decisions must be made about everything from office locations to company branding.

Behind these changes lies another challenge that doesn’t always get the same attention: protecting business data.

Both organizations will have spent years collecting customer information, financial records, employee details, and commercially sensitive documents. Bringing these systems together isn’t necessarily straightforward, particularly when each company has its own approach to cybersecurity.

So, what makes protecting data during a merger so complicated?

Two Companies, Two Very Different Security Setups

Even businesses operating in the same industry can have completely different IT infrastructures.

One company might rely heavily on cloud applications, while the other uses older systems hosted on its own servers. Their password policies, security software, and access permissions may also differ considerably.

These differences can become problematic when employees suddenly need to access information across both organizations.

Connecting networks without properly assessing their security could expose vulnerabilities that previously existed within only one business.

Solutions such as a SASE platform can help organizations apply consistent security and access policies across different users, locations, and applications.

However, before combining systems, both businesses need a clear understanding of their existing technology and potential security weaknesses.

Who Should Have Access to What?

A merger often changes people’s responsibilities.

An employee who previously managed one department might suddenly oversee teams across both organizations. Meanwhile, others may move into different roles or no longer require access to certain information.

This creates an enormous amount of work when it comes to managing permissions.

Giving everyone unrestricted access may seem like the easiest way to keep operations moving, but it can unnecessarily expose confidential information.

Instead, businesses should review permissions based on individual responsibilities and ensure employees can access only the information they genuinely need.

This is especially important for payroll records, customer databases, and confidential commercial agreements.

Customer Data Can’t Simply Be Moved Without Consideration

Customer information is often one of a merger’s most valuable assets.

However, transferring personal data between organizations can raise important legal and regulatory questions.

In the UK, for example, businesses must consider their responsibilities under UK GDPR and the Data Protection Act 2018. Depending on the circumstances, they may need to review privacy notices, lawful bases for processing, and how they will use customer information after the merger.

There are also practical concerns.

What happens if both companies hold records for the same customer? Which database should become the primary source of information? How can you identify duplicate or outdated records without accidentally losing important details?

These questions require careful planning before transferring large amounts of information.

The Overlooked Risks of Third-Party Suppliers

Most businesses depend on external providers for at least some of their daily operations.

These might include accounting platforms, marketing agencies, cloud storage providers, or outsourced IT support.

During a merger, the combined organization could inherit hundreds of existing supplier relationships and the associated access permissions.

Some suppliers may no longer be needed, while others might require access to additional systems.

Reviewing these relationships is an important part of protecting data. Businesses should establish which third parties can access sensitive information, whether their permissions remain appropriate, and what security obligations apply.

Cybersecurity Shouldn’t Wait Until the Merger Is Complete

One mistake businesses make is treating cybersecurity as something to address after finalizing legal and financial arrangements.

By that point, employees may already be sharing documents, transferring information, and using temporary systems to collaborate.

Security planning should begin early in the merger, with safeguards for confidential due diligence information and any data exchanged between the organizations.

IT teams should also be involved in decisions about system integration, employee access, and future technology investments.

The earlier these conversations happen, the easier it becomes to identify potential problems before they affect daily operations.