Reputational Due Diligence – Private Equity

Before closing a deal, you wish to inquire about the background, reputation, integrity and track record of the senior management within the target company.

Case Study

  • A Private Equity firm was at the point of purchasing a majority stake into a family-owned pharmaceutical company in Switzerland. However, the due diligence process highlighted a lack of transparency in a number of areas, including financial reporting. As a result, the Private Equity firm initiated an independent Reputational Due Diligence research into the target company’s management. The chief purpose was to determine whether the lack of transparency was due to “old-school” management practices or the willingness of the senior executives not to disclose fully the current financial condition of the company.
     

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