Published July 7, 2026 · Updated August 21, 2026
Pedro Oliveira, Founder & Principal, Renova Strategy
Ten years ago, cybersecurity rarely came up in a business sale. Today it is a standard section of due diligence, and in many deals it is the section that quietly changes the price.
Buyers are not asking whether your business is interesting. They are asking what risk they are inheriting. A business with weak security controls is a business with an unpriced liability sitting on the balance sheet, and sophisticated buyers price that liability into their offer, or they walk.
Security diligence has become surprisingly consistent across deal sizes. In transactions we advise on, buyers and their advisors typically want to see:
Security weakness rarely appears as a line item labeled “cyber discount.” It shows up in other ways:
Lower multiples. A buyer who perceives operational risk applies a haircut to the multiple, often without saying why out loud.
Escrows and holdbacks. More of your proceeds get held back against future claims when diligence reveals unmanaged risk.
Reps and warranties that bite. You will be asked to warrant your security posture. If you cannot do so honestly, the deal structure shifts against you.
Dead deals. Some buyers, especially private equity groups and strategic acquirers with their own compliance obligations, simply pass.
Unlike revenue concentration or owner dependence, security posture can be materially improved in months, not years. The core moves are straightforward: enforce MFA everywhere, document your policies, test your backups, close out known vulnerabilities, and get an independent assessment so you can hand a buyer evidence instead of assurances.
A clean security story does more than avoid a discount. It signals to a buyer that the whole business is run with discipline, and that impression carries into every other part of diligence.
This is an area where our team brings an unusual combination: we advise on transactions, and our founder spent his career leading IT and information security inside operating businesses, so we see security both as operators and as dealmakers. We know what buyers ask because we have sat through the questions, and we know what closing the gaps takes because we have done that work from the inside.
Thinking about selling in the next one to three years? The best time to address security posture is before a buyer finds it. An initial consultation is free.