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We interviewed Partners Rachel Atkins, a leading reputation and privacy lawyer, and Juliet Young, experienced investigator, about why reputation belongs at the dealmaking table.
Dealmaking has always been about the numbers, but now we're seeing the impact reputation is having on the value and success of major capital events. So, Rachel, Juliet - why has reputation become such a critical factor in dealmaking today?
Juliet: Reputation has always mattered, but today’s environment really highlights its value. Despite an estimated $1.2 trillion in private equity capital waiting to be deployed, investors are more selective than ever. Political volatility, regulatory pressure and reputational risk mean that even well‑capitalised deal teams will walk away at the first sign of trouble.
Rachel: Exactly. In fact, research from the World Economic Forum suggests that more than 25% of a company’s market value is directly attributable to its reputation. It’s not just a “nice to have”—it’s an asset that can drive or detract from value. And having reputation advisors at the dealmaking table will allow you to extract maximum value from your deal and avoid unpleasant surprises.
Can you expand on the impact a good or bad reputation can have on a business and its deals?
Rachel: Reputation can set you apart or serve as a warning sign to potential investors. A strong reputation attracts the right talent, clients, and business partners, and it builds resilience around your brand. On the flip side, a poor reputation—or even latent risks that haven’t been properly identified—can lead to increased management time, higher costs, and even regulatory scrutiny. All of these are value detractors that can impact the success of a deal.
Juliet: Right – and a poor reputation is often symptomatic of other operational and commercial issues, which can prompt further investigation and potentially cause a deal to collapse.
Buy-side: Reputation due diligence and risk
It sounds like understanding a company’s reputation is a key part of the buying process - is that right?
Juliet: It’s absolutely key. Financial due diligence is standard, but reputation is often an afterthought, typically only considered late in the process, perhaps when a red flag emerges in commercial due diligence or when stakeholder communications become a focus.
But doing reputation due diligence early, alongside financial and legal checks, can be incredibly insightful - and investors and deal teams are increasingly realising its value alongside the legal, financial and regulatory review.
At its core, reputational due diligence assesses a business across a wide range of factors - external, operational, cultural - through a reputational lens: What do people sayabout the leadership? Are there red flags in the company culture or working practices? Has the company faced employment tribunal cases or whistleblowers? Does it rely on supply chains in unstable markets? These are all factors that can highlight obstacles, risks to be mitigated, or even reasons to revalue the deal.
If it’s so valuable, why isn’t everyone doing it as routinely as financial due diligence?
Juliet: There are some misconceptions about reputational due diligence. First, that it’s just about finding red flags. In reality, good reputational due diligence is about removing obstacles, mitigating risks —perhaps through indemnities or warranties —or negotiating a better price. It’s also about sorting the signal from the noise: Is the negative content about the company or its leaders actually credible? Understanding how the media works, and how it can sometimes be manipulated, is essential.
Sell-side: Preparation, privacy and proactivity
And what should sellers be thinking about?
Rachel: If you’re on the sell-side, you need to reverse the process. Put yourself in the shoes of the acquiring company and find out exactly what information they’ll uncover, as this will shape their perception of your business. Your first priority should be ensuring that what’s out there about your leadership and company is fair and accurate. I advise clients to conduct this “reverse due diligence” as soon as they start considering a sale or capital raise. You also need to be alert to disinformation campaigns, especially online. Is there a smear campaign brewing? Are there broader macro reputation issues affecting your sector?
What can companies do if the picture about their business and its people is inaccurate?
Rachel: If there are false or defamatory statements, they may be able to use legal avenues to have them removed or corrected. If not, prepare rebuttal statements and contextual explanations. Overall, being proactive here is important. Don’t let the media define your narrative. Build a discreet, up-to-date profile so there’s no void for others to fill and ensure you put out the story you want others to see. If privacy is a concern, especially if a sale will create significant wealth for founders, consider where personal information could be exposed.
Any final thoughts on the role of reputation in today’s dealmaking environment?
Juliet Young: Reputation is so often overlooked, or, as I said, only considered at the end. But it’s no longer a soft issue—it’s a strategic asset. It should be incorporated into dealmaking just as financial due diligence is. Whether you’re buying or selling, integrating reputation management into your deal process is essential for protecting the deal, mitigating risk and maximising value.
Rachel Atkins: Ultimately, being proactive about reputation not only builds resilience but also shows buyers that you understand its value, giving you leverage in negotiations.
