2017: the year of social media fails. Over the last six months,
an international air carrier's stock plummeted following a
viral video of security forcefully removing a passenger from a
plane. Then, Twitter was used to publicly assail a soda pop company
for its lack of judgment in releasing a commercial depicting a
celebrity subduing a crowd of protestors with a can of pop.
Before committing to a transaction, a prudent buyer will want to
know any and all potential risks associated with the target. While
social media can play a positive role in a company's business
strategy, it, evidently, can also lead to downfalls. Incorporating
social media into the due diligence process can help to ensure the
buyer will not have to bear the brunt of the effects of a social
media fail. Buyers should request the names of the target's
social media accounts, usernames and passwords, and the names of
the employees operating the accounts. Further, an EY Capital Insights article highlighted
