Avoid having cyber risk derail your plans to sell your business – or acquire one

If you’re planning to sell your business—or acquire one—here’s a hard truth:

Cyber risk can derail the entire deal.

Most owners and buyers don’t see it coming. Yet it can delay closing, crater valuation, or kill the transaction outright.

Why I’m Writing This

I was recently talking with a friend who’s on track to buy four businesses this year. Ambitious plan.

I asked him: “Are you factoring cyber risk into your due diligence?”

He wasn’t.

That stopped me.

Too many sellers overlook this. Selling a business isn’t just about EBITDA multiples. If you discover a breach mid-deal, it’s like finding hidden foundation damage in your dream property.

A breach can lead to:

• Weeks or months of delays
• Expensive, buyer-driven remediation
• Renegotiated price
• Or the buyer walking away

And the bigger question: does the business even survive the cyber event?

The 5-Year Question: Who Will Own Your Business Next?

This isn’t just about one deal. It’s a generational shift.

Around 12 million small to midsize businesses in the U.S.
An estimated 78% owned by Baby Boomers, many in their 60s and 70s
For many, 80% of retirement wealth is tied to the sale

Over the next 5–10 years, millions of businesses will change hands.

And let’s be honest: it’s hard to think about someone else taking over your business. For many of us, it’s our baby.

No one wants to hear their baby’s ugly. But that’s exactly what happens in due diligence if you’re not prepared.

If you’re selling: Are you ready to pass it on with confidence? If you’re buying: Are you prepared to evaluate and manage the risks you’re inheriting?

Why Cyber Risk Is Now a Deal-Breaker

This isn’t theoretical.

• SMB attacks rose from 62% to 72% last year (Arctic Wolf, 2024)
• 80–85% of SMBs have never done even one cybersecurity assessment (Hiscox)
• 66% of businesses that suffer a major cyber event go out of business within six months (Ponemon Institute)

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

Independent Assessment: A Best Practice for Both Sides

It’s not enough for a seller to wave around an internal IT report.

Buyers want—and should insist on—an independent, third-party assessment.

Why?

• Sellers’ internal teams or MSPs have incentives to downplay problems
• Buyers need an objective view of real risk
• Insurance carriers demand independent validation
• Regulators and boards expect documented, unbiased assurance

For Sellers: Get a readiness assessment from an independent party before going to market. Fix issues before the buyer finds them.

For Buyers: Establish an independent validation standard as part of your due diligence. Don’t rely on what the seller hands you.

The Good News: It’s Fixable

A strong cybersecurity program isn’t just defensive. It’s a value builder:

• Reduces deal friction
• Gives buyers confidence
• Signals mature management
• Protects your asking price—or justifies a premium

We’ve seen it work. Deals close faster and cleaner because sellers can prove they’re ready.

What Sellers Should Do Now

• Commission an independent cyber risk assessment before listing
• Remediate issues proactively
• Include your security posture in your data room
• Be prepared to answer tough questions from buyers and insurers

For Buyers

• Make cybersecurity standard in due diligence
• Require independent assessments
• Quantify remediation costs before you buy
• Understand insurance implications up front

Final Thought

Selling your business is the reward for years—often decades—of work. Don’t let a preventable cyber risk blow it up at the finish line.

And don’t tell yourself, “We’re too small for anyone to care.”

Hackers know small and midsize businesses are less prepared. That’s precisely why you’re on their list.

This isn’t just about valuation. It’s about protecting what you built so it can take care of you and your family for years to come.

Your business isn’t just your retirement plan. For many of us, it’s the security of our family for generations.

If you’re preparing to buy or sell a business this year, let’s talk. NCX Group helps owners evaluate and strengthen their cyber risk posture so they can sell with confidence and buy with clarity.

PS: For many of us, this business is our life’s work—and our retirement plan. Treat it like the golden goose it’s been—not a salvage-title wreck. Protect the value you’ve spent a lifetime building—for yourself, your family, and the generations that will benefit from what you’ve built. If you found this valuable, share it with another business owner who needs to see it.

Sources:

• Arctic Wolf 2024 SMB Cybersecurity Trends Report
• Hiscox Cyber Readiness Report 2024
• Ponemon Institute 2023–2024 Data Breach Cost Studies
• Exit Planning Institute, Project Equity, SBA Small Business Profiles

Repost from LinkedIn – https://www.linkedin.com/pulse/selling-your-business-dont-let-cyber-risk-turn-golden-fitzpatrick-1tbkf/

Let’s Talk

If it’s been more than a year since your last cybersecurity assessment—or if you’ve never done one—now is the time.

👉 Schedule a Strategy Call with NCX Group