Cyber Risk Quantification (CRQ) for M&A Due Diligence
Understand the financial impact of cyber risk long before the deal is closed. Kovrr’s CRQ platform equips security and risk leaders to conduct fast, data-driven cyber due diligence during mergers and acquisitions, ensuring cyber exposure is fully quantified and strategically accounted for.

Why Cyber Risk Can Derail M&A Deals
Traditional due diligence processes often overlook the true cost of cyber risk. Common gaps include:
A lack of financial, data-driven visibility into the organization’s cyber exposure.
Overreliance on static security assessments, audits, or compliance checklists.
Unseen inherited cyber risk from third-party tools, data, or previous incidents.
No shared framework for evaluating cybersecurit risk in tangible business terms.
Tech audits
Spreadsheets
Unknown loss scenarios
Limited valuation insights
Financial risk quantification
Loss scenario modeling
Risk exposure simulations
Business-aligned metrics

Feature Highlights:
Assess Financial Exposure: Quantify cyber loss scenarios (e.g., ransomware, data breach) in dollar terms.
Compare Risk Postures: Benchmark the target’s exposure against industry norms and risk tolerance levels.
Simulate Post-Acquisition Risk: Model the combined exposure of buyer and target, ensuring visibility.
Prioritize Mitigation: Identify critical cybersecurity risks that need to be addressed pre- or post-close.
Enable Risk-Based Pricing: Use financial insights to adjust deal terms, valuation, or escrow reserves.
The cost of acquiring a business includes the cost of bringing its cyber risk down to acceptable levels.
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Confident Decisions and Stronger Deals With CRQ
Faster Risk Assessments: Complete the cyber due diligence in days, not weeks.
Stronger Valuations: Discover what cyber risk could actually cost the company.
Strategic Negotiation: Use risk insights to shape deal terms, liability, or post-close obligations.
Executive-Ready Reports: Deliver financial clarity to legal, finance, and board stakeholders.
Unlock Business Value from Risk Data: Translate cybersecurity posture into deal-time decision power.

Cyber Risk is a Core Business Variable in Every Deal
Without a clear understanding of the risks your organization may inherit or the cost to bring them in line with risk appetite, you’re negotiating in the dark. Integrating CRQ into M&A due diligence is no longer optional.


CRQ for M&A Due Diligence FAQs
Schedule a DemoHow does Kovrr’s CRQ support the M&A due diligence process?
Kovrr's on-demand CRQ solution models a potential target company's cyber risk and automatically translates exposure outcomes into financial terms. With tangible business insights, acquirers can easily understand what risks they might be inheriting and, subsequently, what it may cost them to reduce them, ensuring that this information is factored into the decision-making process.
Can Kovrr compare the cyber risk of multiple acquisition targets?
Yes. Our cyber risk quantification supports side-by-side modeling. Buyers can run quantification for multiple entities and compare the ensuring results. With the financially backed data and granular visibility, buyers are equipped to prioritize the lower-risk, higher-value opportunities and ensure that, when pursuing a new investment, they're not exceeding risk appetite and tolerance levels.
Is it possible to simulate post-merger cyber risk exposure?
Absolutely. Security and risk managers (SRMs) can easily model what the cyber risk exposure of a combined entity might be with Kovrr's on-demand CRQ platform. There are no restrictions on modeling hypothetical scenarios. In fact, it's one of the capabilities the solution excels in, allowing stakeholders to identify cyber risk hotspots or integration challenges before they surface and mitigate them accordingly.
Can Kovrr help evaluate cyber risk across a portfolio of companies?
Yes. Kovrr's CRQ platform supports assessments both at the individual organization and portfolio levels, making it the ideal tool for private equity firms, holding companies, or strategic buyers evaluating multiple targets. Stakeholders can model, compare, and prioritize investments based on each company's cyber risk exposure and potential financial and operational impact, ensuring capital is allocated more effectively and cyber liability surprises are circumvented.