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Why do private equities conduct B2B due diligence surveys?

The main reason to conduct a B2B due diligence survey is to reduce uncertainty. For that purpose, a survey streamlines and simplifies the process of data collection, acting as a one-stop shop for all data needs. It also makes the process quicker and more efficient. Furthermore, it serves as historical proof for any legal obligations that may arise in the future.

Here we have listed a couple of reasons why PE firms include surveys in their commercial due diligence process.

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DD Surveys remove bias

When an expert gets on the phone to answer any questions you might have about the industry there is definitely some kind of bias involved in the answers. Every person is individual and has their own opinion about markets or certain situations. It is hard to be completely objective on an expert call and leave your individuality behind. Thus, a DD survey comes into place to support the data PE firms get from their professional calls. This way the bias is removed as more people are being asked the same questions and they can only choose an answer from the pre-defined choices unless there are open ended questions too.

B2B due diligence surveys produce digestible results

A B2B due diligence survey will enable a PE firm to analyse data fast and easy. This is because the surveys usually produce an excel file with all the answers. Thus, you can use the data to build models, analyse trends and patterns in the answers in any way you see fit. This gives you an approachable angle to get the answer for data driven investment decisions.

They are Fast

What can be faster than to recruit respondents dynamically and get final results in a matter of days. Some survey providers can find b2b decision makers in any field and based anywhere globally. There are different ways to recruit B2B knowledgeable respondents but either way it is much faster than data from professional calls. When PE firms try to arrange expert calls and talk to each person for 30/60 min the process could take over 2 weeks to finalise.

Ethan

Ethan is the founder, owner, and CEO of EntrepreneursBreak, a leading online resource for entrepreneurs and small business owners. With over a decade of experience in business and entrepreneurship, Ethan is passionate about helping others achieve their goals and reach their full potential.