Is Traditional Due Diligence Dead? A Look at 2019 AI-Enabled Due Diligence Best Practices

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Due diligence is a time-sensitive, high-risk process. Acquirers need immediate access to numerous stakeholders who can give data and insights into various highly specific details about the target company. Typically, these stakeholders need to be reached for consultations in a matter of days — and each of them needs to be able to give highly specific insights in order to contribute to comprehensive due diligence. Meeting these timing and respondent targeting criteria is a major challenge for most firms, particularly in niche or highly technical industries. Because of this, many firms and companies are turning to AI-powered expert search engines.

Custom Recruiting and Integrated Survey Solutions: The AI-Powered Approach to Due Diligence

There are two components of connecting with stakeholders to perform due diligence, and most companies conduct them in an inefficient manner:

1. Custom Identification and Recruiting

This step consists of identifying who you need to speak with (title, company, geographic location, etc.) and then finding people who fit the requirements, without breaking compliance regulations. Most companies conduct this step by identifying people in pre-existing networks, but this yields limited results and may not surface people who are precise matches for your due diligence needs.

2. In-depth interviews and integrated surveys

Typically, companies require numerous consultations with different cohorts of stakeholders, or they require data from stakeholders that can be collected in a survey format. Many firms struggle with the latter in particular, because they are unable to identify and connect with enough respondents to ensure data reliability.

The NewtonX AI-powered platform takes a different approach. Rather than relying on pre-existing networks of consultants, the proprietary NewtonX algorithm identifies the best respondents for any particular need from multiple databases of over 600 million people worldwide. This ensures that you can get data and insights from people who precisely fit your needs — not just the best fit within a closed network.

Whether you need to conduct a survey with 100 enterprise customers, or an interview with the former CFO, the algorithm can rapidly identify the best person in the world — not just the network — for the job.

Scale, Speed, and Custom Targeting

Speed: By leveraging the power of AI, NewtonX can find precise matches for due diligence needs, and reach out to these people at three times the speed of traditional networks. Additionally, NewtonX screens these experts within 24 hours to ensure that clients get the best stakeholders to give them the information they need for robust due diligence. This custom recruiting combined with human screening gives you the best possible respondent in the shortest possible time frame.

Scale: The quality of expert does not diminish with scale. Because much of the identification process is done through an AI-powered algorithm, the quality of the output is just as good for five people as it is for a full-scale survey. Because the average turnaround for surveys and for expert calls is significantly faster and more accurate for NewtonX than it is for traditional expert networks, our clients can scale along with us.

Custom Targeting: Whether your due diligence requires speaking with customers, the head of procurement, distributors, or all of the above, NewtonX can find a precise match in even the most pressing of timeframes.

NewtonX provides integrated survey solutions and targeted expert calls to three of the top five management consulting firms in the world, global market research firms, and Big Five tech companies. To learn more about how NewtonX can help you, reach out to request@newtonx.com.

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About Author

Germain Chastel is the CEO and Founder of NewtonX.

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