Clear, Trusted Cybersecurity
for High-Stakes Transactions
We bring clarity to complex regulatory obligations so your deal teams can concentrate on building relationships and delivering exceptional outcomes. Katalism acts as an extension of your team — securing sensitive data, validating compliance, and protecting deal value from LOI through integration.
of acquirers have encountered cybersecurity issues that put a deal at risk
average cost of a U.S. data breach (IBM, 2024)
SEC Reg S-P breach notification deadline
of PE firms report increasing focus on portfolio cybersecurity
Deal Value Protection
Why Cybersecurity Due Diligence Is Non-Negotiable
Cybersecurity is now a critical component of every private-equity and M&A transaction. Hidden breaches, compliance gaps, and weak controls in a target company don't disappear at close — they become your liability.
Industry research consistently shows that failing to uncover cybersecurity issues during due diligence can cause fines, reputational damage, and deal disruption. Effective due diligence identifies vulnerabilities early and helps organizations demonstrate a commitment to data security — protecting both deal value and investor confidence.
For financial advisory firms operating under SEC and FINRA oversight, regulators can review communications and data handling during transactions. Compliance gaps discovered post-close create material risk — including enforcement actions, customer notification obligations, and remediation costs that erode the investment thesis.
Protect Deal Value
Identify material cybersecurity risks before they become post-close liabilities. Inform deal terms with evidence, not assumptions.
Accelerate Closing
A clean cybersecurity assessment removes a common source of deal friction and delays. Demonstrable security posture builds buyer and seller confidence.
Reduce Post-Close Surprises
Uncover undisclosed breaches, compliance gaps, and vendor risks before integration. Remediate critical issues on a known timeline.
Our Services
Cybersecurity Services for Deal Teams
Our secure IT solutions give your deal teams the confidence to focus on building relationships and delivering exceptional outcomes. We handle the complexity.
Secure Data Room Configuration
We configure and harden virtual data rooms to ensure that sensitive deal documents — financials, IP, customer data, contracts — are accessible only to authorized parties with full audit trails.
Key Controls
Encryption at rest and in transit, role-based access, watermarking, session logging, MFA enforcement.
Cybersecurity Due Diligence Assessments
We evaluate the target company's security posture before close — identifying vulnerabilities, compliance gaps, and material risks that could affect deal value or create post-close liability.
Key Controls
Vulnerability scanning, policy review, access control audit, encryption verification, incident history review.
Penetration Testing
We simulate real-world attacks against the target's infrastructure to uncover exploitable vulnerabilities before they become your liability. Results are documented in a format suitable for deal committees.
Key Controls
External and internal penetration testing, web application testing, social engineering assessments.
Vendor & Third-Party Risk Assessment
We inventory and assess every third-party vendor with access to sensitive data — custodians, cloud providers, SaaS platforms — and identify contractual and technical gaps.
Key Controls
SOC 2 report review, contractual security clauses, access privilege audit, data flow mapping.
Incident Response Planning
We build or validate incident response plans that satisfy SEC, FINRA, and FTC requirements — ensuring the combined entity can detect, contain, and recover from a breach with defined notification timelines.
Key Controls
IR plan development, tabletop exercises, communication trees, 30-day notification procedures (Reg S-P).
Regulatory Compliance Validation
We verify compliance with SEC Regulation S-P, FINRA cybersecurity guidance, FTC Safeguards Rule, SOC 2, and state privacy laws — and identify gaps that must be remediated pre- or post-close.
Key Controls
WISP review, MFA coverage, books & records retention (Rule 204-2), Qualified Individual designation (FTC).
Transaction Lifecycle
Embedded With Your Deal Team From LOI to Integration
We work on your timeline because transactions don't wait. Here's how we support each phase.
Initial Risk Assessment
High-level cybersecurity risk evaluation of the target to inform deal terms and identify potential deal-breakers before significant resources are committed.
Deep Technical Assessment
Comprehensive vulnerability assessment, penetration testing, policy review, vendor risk analysis, and regulatory compliance verification. Findings documented for the deal committee.
Remediation & Planning
Critical vulnerabilities remediated before close. Integration plan developed for IT systems, security controls, and compliance programs. Transition risks identified and mitigated.
Integration & Hardening
Rapid onboarding of the acquired entity onto a standardized, compliant IT environment. Consolidated security monitoring, unified compliance documentation, and ongoing managed services.
Regulatory Expertise
We Know the Rules Your Deals Operate Under
SEC Regulation S-P
Requires written cybersecurity programs, incident response plans, and customer notification within 30 days of a breach. Examiners review these controls during and after transactions.
FINRA Cybersecurity Guidance
Broker-dealers must maintain cybersecurity programs commensurate with risk. FINRA examination priorities include identity management, vendor risk, incident response, and business continuity (Rule 4370).
FTC Safeguards Rule
Requires firms engaged in financial activities to implement MFA, encryption, access controls, annual penetration testing, and designate a Qualified Individual. Katalism can serve as your QI.
SEC Rule 204-2 (Books & Records)
Electronic communications and trade records must be retained in compliant, tamper-proof formats. Critical during transactions where regulators may review data handling practices.
Frameworks & Standards We Work With
Proven Results
Case Studies
Ransomware Recovery & FTC Audit Remediation
Remediated persistent ransomware compromises, migrated a 32-person Dallas RIA to Microsoft Entra and Office 365, and delivered the evidence to pass the FTC audit.
Outcome: Passed FTC audit
Read case studyIT Modernization for an Equipment Finance Lender
Consolidated tools, hardened systems, secured vendor integrations, and built a tested continuity plan for a 13-person commercial lender.
Outcome: Audit-ready
Read case study"Katalism cleaned up the attack, rebuilt our security posture, and gave us a compliance program we can finally trust. Their team was transparent and practical — they didn't just patch things, they helped us stop the problems from coming back."
Your Team
Jameson Smallwood
CEO & Co-Founder
Co-founded Katalism in 2017 to bring compliance-first IT to regulated industries. Leads strategy, client relationships, and the company vision. Directly oversees engagements with financial advisory and private-equity clients, bringing hands-on experience with SEC, FINRA, and FTC compliance across dozens of regulated firms.
Sarah Tan
CMO & Co-Founder
Co-founded Katalism and drives marketing strategy, brand positioning, and growth initiatives. Ensures Katalism's approach to compliance-first security reaches the regulated industries and transaction-focused firms that need it most.
Cybersecurity Due Diligence Checklist for Deal Teams
Key controls, regulatory requirements, and red flags to evaluate during any M&A transaction involving financial data. Covers MFA, encryption, access controls, business continuity, vendor assessments, and SEC/FINRA/FTC compliance checkpoints.
Frequently Asked Questions
Why is cybersecurity due diligence important in M&A transactions?
Failing to uncover hidden cybersecurity issues can result in fines, reputational damage, and deal disruption. Undisclosed breaches, compliance gaps, or weak controls in the target company become your liability post-close. Effective due diligence identifies these vulnerabilities early and helps organizations demonstrate a commitment to data security — protecting deal value and reducing post-close surprises.
What does a cybersecurity due diligence assessment include?
Our assessment covers vulnerability scanning, penetration testing, policy and procedure review, access control audits, encryption verification, vendor risk analysis, incident history review, regulatory compliance checks (SEC, FINRA, FTC, state privacy laws), and a prioritized remediation roadmap. Results are documented in a format suitable for deal committees and legal review.
How do you support private-equity firms with portfolio companies?
We provide cybersecurity due diligence during acquisitions, rapid post-close IT integration, standardized security controls across portfolio companies, ongoing compliance management, and vCISO services for portfolio-wide security oversight. We scale seamlessly — whether the portfolio company has 5 employees or 100+.
Which regulations matter most during financial M&A transactions?
SEC Regulation S-P (customer data safeguarding and breach notification), FINRA cybersecurity guidance, FTC Safeguards Rule (MFA, encryption, penetration testing, Qualified Individual), SEC Rule 204-2 (books and records retention), and state privacy laws. Regulators can review communications and data handling during transactions, so compliance gaps discovered post-close create material risk.
Can Katalism act as an extension of our deal team?
Yes. We embed with your deal team to provide cybersecurity expertise throughout the transaction lifecycle — from pre-LOI risk screening through post-close integration. We deliver clear, actionable findings that inform deal terms, and we work on your timeline because we understand that transactions don't wait.
Discuss Cybersecurity for Your Next Transaction
Whether you're acquiring, divesting, or integrating portfolio companies, we bring clarity to the cybersecurity complexity — so your team can focus on the deal.