Byline: Don’t Neglect Security in M&A Due Diligence

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Look at any M&A due diligence checklist and you’ll see the same things: financials, customer information, sales, real estate, intellectual property, contracts—and the list goes on. One thing you may not see is information security, and that can be a crucial mistake.

Like any other critical component of running a business, security needs to be right at the top of the list for M&A due diligence. When combining two companies, they often have different and sometimes even incompatible systems and data. That can create opportunities for hackers. If a company is in the news for a merger or acquisition, it’s a fair bet that hackers and data thieves are going to try their hand at breaching its security. A good business decision can turn bad very quickly if security is an afterthought.

A CFO’s job is to realize the optimal business case, mitigate the risk, and protect the company’s assets, both tangible and intangible. In addition to data, some of a company’s most critical assets are its reputation and the loyalty of customers. An acquisition can make customers of both companies apprehensive. If that’s followed up by a massive breach of sensitive customer data, the companies’ customers will flee in droves.

To avoid that worst-case scenario, here are some things to keep in mind during the M&A process.

Energy Department Prepares Contingency Measures for Storm Nina

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Energy Secretary Alfonso G. Cusi directed the energy family and its partner agencies to prepare and closely monitor the entry of Tropical Storm (TS) Nina in ensuring minimal impact to energy facilities for the people to enjoy continuous energy supply during the holidays.

According to the weather bureau PAGASA, TS Nina is expected to make landfall over the Bicol Region, particularly in Samar, between 24 and 25 December 2016.

Sec. Cusi said, “I asked the energy family, specifically the National Grid Corporation of the Philippines (NGCP) and the National Electrification Administration (NEA), to prepare necessary pre-cautionary measures, especially for the speedy restoration and recovery if the storm will affect the power facilities.”

“Even during holidays, the Task-Force Kapatid will be readied for easy mobilization of assets,” Secretary Cusi added.

In particular, the Secretary also alerted the concerned electric cooperatives specifically those within the projected track of the storm of their contingency measures and to closely coordinate with concerned government agencies and local government units.

As to petroleum products, Sec. Cusi asked the oil companies to ensure prescribed inventory of fuels, especially to those communities that depend on gasoline and diesel for their daily activities, to protect oil consumers from hampered services.

On the other hand, Sec. Cusi reminds the public to immediately report to the nearest authority/ies any incidents affecting the power supply facilities and to exercise emergency and safety measures as follows:

· Charge flashlights and mobile phones
· Be informed on the latest news updates
· Switch-off circuit breaker and other electrical systems to avoid electrocution, among other electrical mishap.
· After the typhoon, check first before using the electrical systems to avoid short circuits.

“We should not downplay the possible impacts of Tropical Storm Nina. We have to consistently prepare and ensure that the generation, transmission, distribution and oil facilities are all operational before, during and even after the storm. The DOE is committed to work for the Filipinos to enjoy the holidays despite the coming of the typhoon,” Secretary Cusi concluded.

CHED Supports Broadest Access to Higher Education

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The Commission on Higher Education (CHED) supports the inclusion of an eight billion peso (PhP8B) budget for Free Tuition for all Undergraduate Students in all State Universities and Colleges (SUCs) as a special provision in the 2017 General Appropriations Act.

In the short term, this will incrementally improve enrollment rates, and will help free up financial resources for other college expenses and needs of the students. From a wider perspective, this amount will eventually increase the available income of families.

To bring the country closer to the reality of Free College Education, the Commission will work overtime to ensure that the wisdom and specific intentions of lawmakers will be accurately reflected in the Free Tuition guidelines it is set to create. CHED will coordinate with the Department of Budget and Management (DBM), the Commission on Audit (COA) and other oversight government agencies to ensure the legality of all the proposed processes and procedures in the guidelines. CHED will also coordinate with all private Higher Education Institutions, both individually and through their various associations, to help ensure their role under this new policy regime. CHED will also work closely with the Technical Education and Skills Development Authority (TESDA) for improved complementation.

In light of issues and concerns raised by various sectors, CHED is aware of its responsibility to ensure that these funds are spent according to how they are intended. It will be guided by fairness, cost recovery and alignment of incentives.

CHED will ensure that the wide-reaching implications of this major reform in Higher Education will be brought about effectively, and any negative consequences will be
minimized. The timing of this reform is fortunate, as strong political will and a robust economy allows the country to embark on major reforms that were not possible in the past.

Issued this 23rd of December 2016 at the Higher Education Development Center Building, C.P. Garcia Avenue, Diliman, Quezon City.


For the Commission:

(signed)
Patricia B. Licuanan, Ph.D.

Chairperson