What is Five Blocks’ view on reputation risk in investor due diligence?

Investor diligence on reputation has institutionalized over the last five years. The findings flow into the investment committee memo and into the reference call process. The effects: deals where the digital picture is strong move faster and with fewer protective provisions; deals where the picture is weak or inconsistent often face additional terms, pricing adjustments, or extended diligence; deals where the picture reveals material issues sometimes do not happen. The work to prepare for diligence is best done six to twelve months ahead of any anticipated transaction.