Selling Your Business? Don’t Let Cyber Risk Kill the Deal

If you’re preparing to sell—or buy—a business, here’s the risk too many owners overlook:

Cybersecurity can wreck the deal.

Most don’t see it coming. But a single breach—or even the lack of a credible cybersecurity program—can delay closing, slash valuation, or cause the deal to fall apart entirely.

A Real Wake-Up Call

I recently asked a friend, who’s acquiring four businesses this year, if he was evaluating cyber risk during due diligence.

His answer? No.

That’s a dangerous blind spot. Selling a business isn’t just about EBITDA. It’s like selling a house—if the foundation’s cracked and no one checked, someone’s going to pay for it. The same goes for cybersecurity.

The Clock Is Ticking

There are around 12 million small to midsize businesses in the U.S. Roughly 78% are owned by Baby Boomers, most nearing retirement. For many, 80% of their wealth is tied to the business.

That means that, over the next five years, millions of businesses will change hands—and cyber risk will be one of the top deal-breakers.

No one wants to hear their “baby” isn’t ready to sell, but that’s exactly what happens in due diligence if cyber risk hasn’t been addressed.

This Isn’t Just a Big Company Problem

• 72% of SMBs were hit by a cyberattack last year (Arctic Wolf, 2024)
• 80–85% have never had a cybersecurity assessment (Hiscox)
• 66% of companies suffering a serious breach had shuttered within 6 months (Ponemon)

These aren’t Fortune 500 issues. This is Main Street reality.

What To Do

Sellers:

• Get an independent cybersecurity assessment
• Fix gaps before the buyer finds them
• Include security documentation in your data room

Buyers:

• Don’t trust internal IT reports
• Require third-party validation
• Know your remediation costs before you close

Final Thought

Selling your business is the reward for decades of hard work. Don’t let a preventable cyber risk destroy that legacy.

Cyber due diligence is becoming the new norm. Count on it.

If you plan to sell your business in the next 5 years, contact NCX Group at (888) 448-5451 or visit NCXGroup.com to evaluate and reduce your risk before it becomes a problem.