Wall Street advisors are adding guarantees to certain merger agreements, known as “the Weinstein clause”, in light of the sexual misconduct scandals that have enveloped the producer Harvey Weinstein and other high-profile businessmen – ones that legally vouch for the behaviour of a company’s leadership. The move is particularly noteworthy given its source: the male-dominated world of M&A advisory where the terms of an offer can make or break a bid. In some cases, buyers have even negotiated the right to claw back some of the money they paid if subsequent revelations of inappropriate behaviour damage the business. “Social due diligence is becoming more and more important and, particularly for founder-centric businesses, money is being put aside to address #MeToo issues,” said Gregory Bedrosian, chief executive officer of boutique investment bank Drake Star Partners.

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