Are client conflicts of interest a worry when buying a public relations firm?

Public relations work depends on trust and discretion. A firm may know a client’s launch plans, a legal dispute or a crisis before anyone else does. If that firm also works for a competitor, or for someone on the other side of an issue, the clients may be uneasy. As a buyer, you inherit that situation.

Ask the owner how conflicts are handled today. Is there a written policy? Who decides whether to take on a new client? Do any clients know about the others, and did they agree? Ask to see any waivers, and any times the firm turned work away or lost a client because of a conflict.

Next, think about your own position. If you already own another business or work with other organizations, your involvement could create new conflicts. Clients might leave, or ask for changes. Ask the key clients, with the owner’s consent, how they would feel about a change of ownership. Finally, look at the contracts for confidentiality and exclusivity terms. Your lawyer can tell you what they require and whether a sale triggers any notice. Your own advisor can help you decide whether the client mix suits your plans.

Key takeaways

• Get the full client list and check for competitors or opposing interests.
• Ask for the written conflict policy and any waivers or past disputes.
• Consider how your own interests might create conflicts once you take over.