Assessing Reputational Risks in Private Equity Transactions
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March 13, 2025
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Reputational risk assessment is a crucial part of private equity transactions, helping firms avoid financial and operational pitfalls. FTI Consulting helps you identify and mitigate these risks by conducting reputational due diligence.
Key areas of reputational risk we assess include:
- Company Background – Examining past financial difficulties or reputational issues.
- Key Individuals – Assessing founders, executives (CEO, CFO, chairman), and other key players for any concerns.
Reputational Due Diligence Process
Our due diligence process combines thorough research and market intelligence to identify potential risks that could impact a transaction’s success. This includes:
- Public record research – Analysing financial, legal, and media sources to uncover past financial or reputational issues.
- Discreet market inquiries – Engaging industry sources for deeper insights beyond publicly available information.
The Cost of Overlooking Reputational Risks
Failing to conduct thorough reputational due diligence can result in post-transaction issues such as fraud or corruption, leading to financial losses and reputational damage. Conducting due diligence in advance allows you to identify potential risks, mitigate issues proactively, and safeguard the value of your transactions.
Post-Transaction Support – Navigating Growth and Challenges
Beyond pre-transaction assessments, we provide comprehensive post-transaction services to help optimise portfolio companies. Whether you’re expanding through secondary transactions and bolt-on acquisitions or facing unexpected challenges such as allegations of misconduct, our consulting experts offer the investigative and strategic support needed to protect and strengthen your investment.
Additionally, we can assess broader non-financial risks such as cybersecurity, privacy and information governance, and ESG concerns.
For more information on assessing and mitigating reputational risks in private equity transactions, contact Carla Liedtke.
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Published
March 13, 2025
Key Contacts
Managing Director