Private equity due diligence is one of the most time-sensitive use cases of expert knowledge sourcing. It demands specificity, detail, and precision for deal processes that operate on increasingly compressed timelines. Traditional research approaches like expert networks and calls fail to deliver true information edges due to their limited pools. For informed decision making on high stakes deals, leading investors turn to expert surveys at scale — augmenting anecdotal call insights with statistically significant data.
The old approach: Limited expert pools and incomplete datasets
Traditional approaches to sourcing subject-matter experts operate within constraints that are too tight for the specificity and speed needed for due diligence. Old-school expert networks rely on a limited pool of expertise that consists of vetted consultants who have signed up to be part of the network. Because the pool of possible people to connect with is limited, companies run the risk of being given an expert who is not a perfect match, with no time to find a better one. Moreover, conducting research through calls with small sample sizes of under ten respondents can easily miss outliers — or bias towards them — yielding incomplete datasets.
With modern knowledge platforms that leverage automation, forward-thinking research providers have moved beyond the expert network model to offer expert sourcing and surveying within time constraints.
The new solution: Custom recruited experts, surveyed at scale
Open access knowledge platforms take a different approach than traditional closed expert networks. Rather than relying on pre-existing networks of consultants or CEOs, the NewtonX search engine — built specifically to index specialized B2B knowledge — identifies the best respondents for any particular need from over 1.1 billion professionals worldwide. We custom recruit respondents who precisely fit your needs, not just the best fit within a closed network.
We identify expertise through a two-pronged approach: evaluating both purported knowledge and experience in the field. Old-school networks define expertise in outdated ways: they define ideal consultants as those who possess knowledge, rather than experience. In contrast, when evaluating niche topics like cloud services software, it’s crucial to source an array of experts to gather different applied perspectives — spanning enterprise architects, data engineers, and senior ITDMs.
Obtaining a representative sample covering the target focus is only the first step. Rather than selecting a small sample of five experts to conduct interviews, sophisticated knowledge platforms enable investors to source fifty professionals to answer targeted surveys — thus multiplying data points and maximizing research spend.
The advanced method: Surveys augment interviews with a hybrid approach
There are two sides to the coin when conducting due diligence: qualitative opinions from market participants (pain points, opinions on brands or products) and quantitative insights (price points, tech specs). The most effective way to get both aspects is through surveying large quantities of experts in a given category and then conducting follow-up qualitative interviews with select experts from the initial pool. This ensures that you have a full picture of the topic you’re diligencing — allowing you to make the most informed decision possible.
Utilize NewtonX surveys for better deal making and returns
By leveraging automation, NewtonX can find precise matches for private equity due diligence needs and recruit experts at three times the speed of traditional networks. Additionally, NewtonX screens experts within 24 hours to ensure that clients receive access to the precise stakeholders who will deliver insights for robust due diligence.
This custom recruiting combined with targeted surveys gives you the most data points possible in the shortest time frame. Surveying larger sample sizes of respondents doesn’t only free up investor time and maximize research budgets. It also yields greater information edges, resulting in deeper company understanding and performance projections, and ultimately — better deal making and returns.
Whether your due diligence requires speaking with customers or c-suite executives, NewtonX can find a precise match in even the most pressing of timeframes. To learn about how NewtonX surveys empower better due diligence, get in touch.
