Mergers and acquisitions (M&A) are high-stakes business transformations that demand precision, speed, and security. While IT and security leaders are focused on infrastructure and network integration, identity security remains one of the most overlooked aspects of the transition—and that oversight can be costly.
The recent Google acquisition of Wiz highlights how major technology deals can reshape the security landscape, as organizations integrate new teams, technologies, and operational models. While we are not suggesting this specific transaction carries more or less identity risk than any other, it underscores a fundamental truth: M&A deals inherently involve security unknowns.
Identity-related vulnerabilities—like orphaned accounts, shadow IT, excessive privileges, and missing MFA—are some of the biggest threats in M&A. Attackers know this and often strike when organizations are distracted by the chaos of integration. By the time these risks are uncovered, it may be too late.
The Imperative of IAM in M&A
Identity and access management (IAM) is the framework that ensures the right individuals have appropriate access to organizational resources. During M&A, two distinct entities—each with its own IAM protocols, user directories, and access policies—must be integrated. This integration is not merely a technical necessity but a foundational step to safeguard sensitive data, maintain operational continuity, and uphold regulatory compliance.
Why M&A Creates Identity Security Gaps
When two organizations merge, they bring together not just people and processes but also thousands of applications, identity policies, and access privileges. The challenge? Security teams often have limited visibility into the identity perimeter of the acquired company. Without a clear understanding of what they’re inheriting, IT leaders are forced to make decisions in the dark.
Traditional M&A security assessments rely on manual audits, legacy IAM tools, and complex integrations—often taking weeks or months to uncover identity risks. But attackers don’t wait. Threat actors target newly merged companies, exploiting the confusion to find weak access controls, misconfigured accounts, and overlooked privileged users.
The Risks You Can’t Afford to Ignore
- Divergent IAM Systems – Merging companies often utilize different IAM platforms, leading to compatibility issues. Integrating these systems requires meticulous planning to ensure seamless interoperability.
- Shadow IT and Unmanaged Applications – The acquired company may be using thousands of SaaS applications outside of IT’s visibility. These unknown apps pose a major risk, as they may store sensitive data without proper security controls.
- Orphaned and Redundant Accounts – Former employees, contractors, and vendors often retain access long after they’ve left. During an acquisition, orphaned accounts create backdoors that attackers can exploit.
- SSO Bypass and MFA Gaps – Not all applications are protected by Single Sign-On (SSO) or require Multi-Factor Authentication (MFA). This leaves critical business applications exposed, increasing the risk of credential-based attacks.
- Inherited Security Debt – Legacy identity governance gaps, weak password policies, and excessive admin privileges from the acquired company become your problem the moment the deal closes. Without immediate visibility, these risks can escalate into costly breaches or compliance violations.
- Regulatory Compliance Challenges – Ensuring that the merged entity complies with all relevant data protection regulations is a formidable task, particularly when integrating disparate IAM systems.
Strategies for Effective IAM Integration
- Comprehensive IAM Assessment – Conduct a thorough evaluation of both organizations’ IAM infrastructures to identify potential risks and integration challenges.
- Unified IAM Framework – Develop a cohesive IAM strategy that aligns with the merged entity’s objectives, ensuring consistent access controls and security protocols.
- Account Reconciliation – Identify and eliminate orphaned or redundant accounts, and standardize user identities across the organization to prevent unauthorized access.
- Policy Harmonization – Align access control policies to establish uniform security standards, reducing the risk of internal threats.
- Shadow IT Mitigation – Implement robust monitoring to detect and manage unauthorized applications, ensuring all tools meet security and compliance standards.
- Continuous Monitoring and Auditing – Employ advanced monitoring tools to oversee IAM activities, enabling prompt detection and response to anomalies.
- Stakeholder Collaboration – Foster collaboration among IT, security, and compliance teams to ensure a holistic approach to IAM integration.
The Savvy Advantage: Comprehensive Identity Visibility from Day One
Unlike traditional approaches that take months to assess identity risks, Savvy provides immediate, agentless visibility into your new identity perimeter—before integration even begins. This means security teams can:
- Identify and remediate identity risks instantly – No waiting for lengthy security audits or API integrations. Savvy uncovers hidden SaaS applications, unprotected accounts, and MFA misconfigurations the moment a merger is announced.
- Ensure a seamless, secure transition – Instead of reacting to identity gaps after a breach, security teams can proactively enforce identity hygiene and close risky access points before they become problems.
- Maintain business continuity without disruption – Many security tools introduce friction, slowing down productivity during integration. Savvy’s fail-open architecture ensures that security teams can protect the business without interrupting operations.
The Role of Identity Orchestration in M&A
Identity orchestration serves as a pivotal solution in streamlining IAM integration during M&A. By acting as an abstraction layer, it facilitates seamless interoperability between disparate IAM systems without necessitating immediate consolidation. This approach not only ensures secure and uninterrupted access for users but also allows for a phased and controlled integration process, minimizing disruptions and enhancing security.
Closing the Identity Security Gaps in M&A with Savvy
M&A should drive business growth—not create new security vulnerabilities. Yet too often, identity security takes a backseat to infrastructure integration, leaving organizations exposed to hidden risks that can lead to breaches, compliance failures, and operational disruptions.
With Savvy, security teams gain full visibility into their new SaaS attack surface, enabling them to prevent inherited security debt and eliminate the risks attackers rely on. Whether it’s discovering shadow IT, enforcing MFA coverage, or detecting SSO bypass, Savvy ensures that identity security is a priority from day one.
In a world where M&A-driven breaches are on the rise, organizations can no longer afford to treat identity security as an afterthought. The real value of a successful merger isn’t just about business expansion—it’s about securing that growth from the start.
