How do I check a PR firm’s crisis-response work for clients that left unhappy?

Crisis work is where a PR firm’s reputation is made or lost. A client in trouble is under stress, expects results quickly and may blame the firm if things go badly. When you buy the firm, you also take on its reputation, and possibly its unresolved disputes.

Begin by asking for a list of crisis engagements and which clients left within a short time afterward. For each, ask what the firm was hired to do, what it delivered, and why the relationship ended. Read the engagement letters to see how responsibilities and outcomes were described. Check whether any client complained in writing or asked for money back.

Then check for open matters. Ask the owner whether the firm has received any demand letters, insurance claims or threats, and whether any are unresolved. Your lawyer can tell you how to protect yourself from liabilities that predate your ownership. If the owner agrees, speak with a few former clients, including unhappy ones, and look at public coverage of the firm’s work. Compare the owner’s account with what you hear. A firm that discusses its failures openly, and has learned from them, is easier to assess than one that insists nothing ever went wrong.

Key takeaways

• Request a list of crisis jobs and the clients who left afterward, with reasons.
• Read engagement letters and look for written complaints or open claims.
• Ask your lawyer how to guard against problems that began before you took over.