How do you find experts for diligence?

professional profile

August 22, 2022

by a professional from Colby College in Boston, MA, USA

Curious to hear how people are finding experts for diligence currently? Are you self searching/tapping into 1st+2nd degree connections, using expert networks (GLG, Guidepoint, etc), using research/consulting firms, skipping expert calls unless the deal size is > $X, a little bit of everything mentioned above, or something else? Thanks

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commentor profile
Reply by a searcher
from Babson College in Austin, TX, USA
It depends on the deal - I think core activities are a QoE (lite or standard depending on size), operational DD (visits, review of assets, review of SOPs), and legal DD (background checks on business and person). I always start standard and build out my checklist from there.

If the company itself is more complex, consider SME DD. For example, I was under contract on a niche medical service company, hired a consultant to help me navigate the regulatory complexity. I'm now under contract on an animal service company and its a whats you see is what you get situation.
commentor profile
Reply by a searcher
from Ivey Business School at Western University in Vancouver, BC, Canada
Cold outreach has worked very well for us. I have been totally shocked at the willingness for operators, investors, owners, executives in whatever given industry we are evaluating at the time to connect and be helpful where they can. People are generally keen to help aspiring entrepreneurs who want to learn more about their given industry you just have to ask and come prepared with thoughtful questions (and where possible try and figure out where you can return the favor and provide some value back)
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