How Expert Surveys Help Leverage the Due Diligence Process

  • Pavan Kalyanmath

<p>Large corporations expand and diversify their operations through strategic mergers and acquisitions, and private equity due diligence is a significant component of the M&amp;A journey. These transactions are usually very high-stakes and time-sensitive, with specific insights from expert surveys playing a pivotal role in the decision-making process.</p><p><img src="" /></p><p>Unfortunately, it isn&rsquo;t always possible to immediately source an expert with the specific industry knowledge and experience that a business transaction of this complexity calls for.</p><p class="bbox"><em>Investors are looking beyond expert network firms that rely on closed expert pools. They need&nbsp;</em><a tabindex="-1" title="" href="" target="_blank" rel="noopener" aria-label="Link expert surveys"><em>expert surveys</em></a><em>&nbsp;at scale that yield insights and data points compiled from multiple expert consultations cross-referenced with relevant statistical data.</em></p><p>By using multi-dimensional targeted and personalized expert surveys, investors can acquire the specific information they need.</p><h2><span style="font-size: 14pt;"><strong>The Traditional Approach: Closed Expert Groups and Incomplete Datasets</strong></span></h2><p>Traditionally, expert network firms rely on a limited pool of vetted subject matter experts (SMEs) who are part of their closed network. It&rsquo;s not always possible to match an investor with the ideal expert within these constraints, especially with limited time.</p><p>Additionally, conducting calls and undertaking expert surveys with small sample sizes can lead to incomplete research and inadequate datasets, delaying the decision-making process.</p><h2><span style="font-size: 14pt;"><strong>The New Normal: Custom-recruited Experts, Surveyed at Scale</strong></span></h2><p>Investors seek strategic advice from rigorously <a href="" target="_blank" rel="noopener">custom-vetted experts</a> with highly specific industry knowledge backed by years of experience in the field, a strong network of connections, and extensive market knowledge.</p><p><img src="" /></p><p>The right subject matter expert would be equipped to provide clients with valuable insights when investigating a possible business opportunity or acquisition. But finding an expert that matches the exact criteria can be challenging.</p><p>Rather than relying on dated methods, skilled expert network firms use automation to speed up the expert surveying and sourcing process. Going beyond conventional closed expert networks, professional expert network firms take an open-access approach to sourcing and recruiting subject matter experts.</p><p class="bbox"><em>A competent expert network firm is not confined to a limited expert pool. They can cast a wider net, conduct large-scale expert surveys quickly and efficiently, and then follow up with selected experts to narrow the search. </em></p><p>Today&rsquo;s expert survey solutions incorporate automated processes to track down and recruit the perfect experts for any investor&rsquo;s private equity due diligence needs, even on stringent timelines.</p><p>At Knowledge Ridge, we provide targeted or customized surveys in which an expert panel provides tailor-made responses to key questions. Our extensive online panel community includes niche market experts with direct experience from varied industries, sectors, and consumer demographics across 40+ countries. In addition to planning, we assist with questionnaire design, panel selection, effort and cost tracking, performance monitoring, and project closure.</p><h2><span style="font-size: 14pt;"><strong>Reliable Expert Consultations for Enhanced Due Diligence</strong></span></h2><p>High-stakes negotiations come with several risks and major decisions hinging on expert advice and insights. This is why investors and venture capitalists rely on sound due diligence to accurately appraise a brand or organization they&rsquo;re interested in acquiring. However, time constraints and the volatile nature of such negotiations can expose a few downsides to the due diligence process.</p><p>While halting negotiations to engage in due diligence can help an organization assess the target company, provide transparency for both parties, and ensure a cultural fit between the businesses, there are a few shortcomings. These include the expenses involved and the target company needing to divert operational resources to respond to questions and requests for documentation.</p><p>Additionally, the company being acquired cannot solicit better or more competitive offers during the agreed-upon exclusivity period, which can be highly disadvantageous if the deal falls through during a protracted due diligence process.</p><p class="bbox"><em>Relying on a competent expert network firm to survey and source industry experts can mitigate the disadvantages and risks that come with private equity due diligence. &nbsp;</em></p><p>An accomplished expert network firm increases the likelihood of locating the right experts for the task quickly, giving investors accurate insights&nbsp;to make informed decisions&nbsp;and close transactions on time.</p><h2><span style="font-size: 14pt;"><strong>Why Should You Choose Knowledge Ridge&rsquo;s Custom Expert Surveys?</strong></span></h2><p class="bbox"><em>With extensive experience and access to a global network of experts, </em><em>Knowledge Ridge</em><em> offers targeted and <span style="color: #3598db;"><a style="color: #3598db;" href="" target="_blank" rel="noopener">custom expert surveys</a></span> to ensure that clients receive the precise knowledge they are looking for in the shortest time frame. </em></p><p>Rather than being constrained within a limited pool of experts, Knowledge Ridge employs intelligent approaches designed to index specialized B2B and B2C knowledge and zero in on the ideal experts from millions of candidates worldwide.</p><p>This custom recruitment model makes it possible to swiftly source subject matter experts that perfectly match the client&rsquo;s knowledge requirements, thus speeding up the due diligence process with precise and relevant insights and accurate business performance projections.</p><p><a href="" target="_blank" rel="noopener">Get in touch</a> for on-demand expertise from seasoned industry professionals to test new ideas, accelerate business strategy optimizations or make informed business decisions with quality-driven customized insights.</p><h3><span style="font-size: 14pt;"><strong>Frequently Asked Questions</strong></span></h3><h2><strong> </strong><strong><span style="font-size: 12pt;">How do investors use expert networks for due diligence work?</span><br /></strong></h2><p>Investors use expert networks to source and recruit knowledgeable and experienced subject matter experts to assess the viability of a proposed acquisition.</p><h2><strong><span style="font-size: 12pt;">What exactly is due diligence?</span><br /></strong></h2><p>Due diligence is an investigation or assessment of a business opportunity, usually conducted by investors, venture capitalists, or private equity firms, to gauge the feasibility of a planned acquisition or merger.</p><h2><strong><span style="font-size: 12pt;">What are the most important aspects of due diligence?</span><br /></strong></h2><p>The valuation of a target company's assets and liabilities, risk evaluation, and the detection of pending legal proceedings are among the most crucial components of due diligence.<br /><br /></p>