+ Do you need access to the marketing accounts from the prospective company to do your work?
No, we can operate fully outside-in to begin. We use third party tools and our own research to identify upside, opportunity & risks. If we have access to accounts for paid media, the work can be more detailed but we can get you started pre-LOI without access.
+ Do you need access to the team from the prospective company?
We undrestand that the candidate company may not be ready to have your firm or others speak with members of their team. Our process has been developed in a way that we can do work without needing to speak with anyone on the team. The more access we have, the better, but it's not necessary and our approach works well for pre-LOI situations and also ahead of final bids.
+ What is your turnaround time for due diligence?
Turnaround time depends on the scope of the project, but we understand that private equity can move quickly. We can provide a high level diligence report in under a week. For more comprehensive value creation strategy, the timing can range up to two months, however those are usually done post-LOI where there is more time available.
+ What are you able to cover in due diligence?
Most of our due diligence work covers SEO (organic seaarch), SEM (paid search), paid social and a review of competitors. We often also review the website for opportunity, as well as display advertising. We can go as broad or narrow as your project requires, and adjust based on the data you have received. We can start fully outside-in, or work with first party data, and gather information from the CIM or data room so that it isn't a burden on your team or the candidate.
For example, for one firm's project, we used Google impression share data to validate the proposed lead model that the company shared with them as part of diligence. If you have a specific request or need, just ask.
+ The company we are evaluating hasn't done any digital marketing yet. How can you help?
This is not an unusual situation. We generally focus on a competitive review in order to help you understand how the prospective company's website traffic and other metrics compare to their competitors, and to highlight the marketing mix others are employing. From there we can build a digital strategy that provides you with guidance on the biggest opportunities to act upon as soon as the deal closes.
+ Do you work on B2C, B2B or both?
We work on B2C, B2B, eCommerce, lead gen, short sales cycles, long sales cycles and everything in between. Our team brings extensive experience in both business to consumer, as well as business to business sales. We have worked across dozens of industries and are well positioned to evaluate companies of any size and make up.
+ Can you help with implementation or do you just provide recommendations & observations?
We would love to support your porfolio company with paid search, seo, content creation, digital strategy and more after the deal closes. We understand that marketing teams are often lean when they are acquired by private equity, and our team is ready to help with implementation so that you start building value right away.
+ Do you work on retainer or on a project basis?
We can support your firm any way you believe is best. Some firms with smaller deal flow use us on a project basis, while others have us on a retainer. The retainer model ensures we are always available for quick turnaround projects. If there's not a diligence report needed in a given month, we often shift hours to support a portfolio company or evaluate a competitors.
+ Who does the work on diligence?
The work is completed by subject matter experts and reviewed by a senior member of our team to ensure alignment on upside and risks. Members of our team bring 13 years of digital experience on average, and we have no junior employees.
+ How do you deliver your findings?
Most of our diligence work is delivered in a PDF format of a Word doc. This allows us to give you insights quickly. We provide an executive summary, scorecard, most upside, risks and a detailed appendix.
Value creation or digital strategy is delivered in a Slides or PPT format.
+ If you spot a major issue or concern quickly, will you let us know?
Although it's rare and most of our projects result in finding upside, we occasionally find risks quickly. In this instance, we will reach out to you right away and let you know that there may be an issue. We then do more diligence to validate or confirm our concerns.
+ How does digital due diligence differ from an audit?
Our diligence offering is more focused on identifying upside and risks for you, the investor. An audit is more focused on providing deep guidance on issues and recommendations on how to fix them. They are complementary offerings, and depending on the stage of your investment process, it may make more sense to have us create audits. More simply, a diligence report treats the firm as the client, an audit treats the candidate as the client.
+ Can you interview the team from the prospective company?
Yes, we are happy to speak with members of your investment candidate. Our CEO and/or head of strategy participate in these conversations so that we can gain an undersatnding of their strengths and areas for potential growth.
+ What is due diligence in private equity?
In private equity, due diligence refers to a potential investor's process for assessing the value, desirability, financial viability, possible risks, and overall potential of an investment before committing. Due diligence is how private equity firms evaluate investment opportunities to determine which to pursue.
+ What is a due diligence audit?
A due diligence audit is conducted within a company to determine if that company or business is ready for sale. The purpose is to explore the questions and issues that arise during a standard due diligence process to ensure the founder group is prepared to address any objections. A due diligence audit also provides the necessary backup and planning to ensure a successful transaction.
+ What is involved in the due diligence process?
The due diligence process involves a compliance check, an audit to assess risk, and verifying facts and information. It's the background work done before agreeing on the scope of a partnership agreement. Equity firms predominantly handle due diligence. It involves reviewing a company's performance, comparing the data over time, and setting benchmarks against competitors.