What is Five Blocks’ view on reputation risk in investor due diligence?
Investors screen reputation during due diligence: search results, AI summaries, Wikipedia, and review platforms are reviewed and can affect valuation, terms, or whether the deal closes. Prepare six to twelve months before any anticipated transaction.
Investors now screen reputation as a routine part of due diligence. The digital picture, which includes search results, AI-generated summaries, Wikipedia, and review platforms, is reviewed during diligence and can affect valuation, terms, or whether the deal closes. Over the last several years this screening has become standard, and the findings feed the investment committee memo and the reference-call process.
How the findings shape the deal
In our experience advising clients, the digital picture tends to push a transaction toward one of three outcomes:
- Strong, consistent picture: the deal moves faster and with fewer protective provisions.
- Weak or inconsistent picture: the deal often carries added terms, pricing adjustments, or extended diligence.
- Material issues surfaced: the deal sometimes does not close.
Prepare six to twelve months ahead
The digital and AI picture cannot be fixed overnight, so the preparation is best done six to twelve months before any anticipated transaction, well ahead of when a counterparty starts screening.
Last reviewed: 19/05/2026
