Good. Incidentally, the number of things popping up during such background checks that scuttle a possible deal is quite substantial.
It's not so much that there is stuff that was eye-brow raising, it is mostly a breach of trust in terms of disclosure. Sometimes founders are not honest with each other from the get-go, it wouldn't hurt for founders that feel they are in a position to hit one out of the park to have a 'full disclosure' session with each other so they know at least what if any skeletons there are in the various cupboards rather than to have a surprise late stage rejection. Those are generally bad for business.
