The Power of Expert Calls in Private Equity Research

In the world of private equity, it is no secret that quality research is paramount to success. However, the limited availability of reliable information can make gaining deep insights on a specific industry or company challenging. Because of the gaps that can exist in traditional desk research, expert calls have proved to be a crucial tool for private equity investors today.

Use Cases and Benefits of Using Expert Calls in Private Equity

From sourcing opportunities to finalizing deals, expert calls can be used at every stage of the investment cycle to get the nuanced insight not found in traditional research. Let’s explore how you can take your research to the next level by leveraging expert calls throughout the entire investment journey.

Idea Generation and Sourcing

In an increasingly competitive private equity landscape, it is crucial to be able to identify promising opportunities. In the origination phase, you can use expert calls to:

• Identify current emerging trends and market shifts not yet widely recognized.
• Understand current sentiment and confidence levels within specific industries and markets.
• Gain a comprehensive view of market competition to better assess which companies have unique value propositions or competitive advantages.

While information on general trends and competition can be found in simple desk research, speaking directly with experts can provide real-time perspectives, allowing you to identify areas of growth and/or sectors with the strongest future potential.

Company Research

When researching a specific company, it can be hard to determine if the information, whether it be information you found online or from the company itself, gives an accurate picture of a company’s overall longevity. While third-party market reports, and detailed CIMs can be useful, connecting with trusted experts in the actual industry can help validate information on the company’s business model, competitive position, and growth rate.

In addition, speaking directly with the target company’s suppliers and customers on their experiences and satisfaction levels can give invaluable insight into true customer product preferences as well as the company’s overall reputation and potential operational dependencies.

For example, a middle-market PE firm was looking at a manufacturer of specific computer parts but realized through speaking with industry experts that 70% of the manufacturer’s sales were with one customer. Before they spent half a million dollars on a full research project, they were able to uncover a red flag and walk away from a bad deal.

Connecting with a knowledgeable industry expert can help clarify questions or areas that are hard to understand, specifically when you are researching more complex industries or companies. As you get later in the deal process, expert calls can also help you prepare for meetings with the company’s senior leadership, including for more in-depth meetings such as facility and/or product walkthroughs where you will want to go beyond what was given in the company’s decks.

Expert calls can help you combine market information with real-time industry feedback for a full-picture story of a company so that you can gain conviction or reveal deals that are likely to be unsuccessful.

Post-Investment and Value Creation

The benefits of expert calls do not end post-deal and can be leveraged after the investment to enhance the overall profitability and operational efficiency of your portfolio companies, driving higher returns.

From the start, you can connect with former C-level executives or functional experts with in-field experience to help drive organizational improvements, growth objectives, and/or other specific issues detailed in the 100-Day plan, whether that be supply chain issues or marketing strategies.

In addition, you can tap into expert knowledge when looking for strategic opinions on entering new markets or expanding product lines. Connecting with experts who have successfully navigated similar expansions and/or talking directly with current customers to assess market needs can help you leverage growth and market penetration.

Choosing the Right Research Partner for Your Expert Calls

In an industry where having the right information can make or break an investment, partnering with a reliable and experienced expert network for your expert calls is crucial. As the industry pioneer with 25 years of space experience, GLG is the go-to provider for expert calls and a trusted partner for most of the top 10 largest private equity funds. Some key benefits of GLG over other expert networks include:

Breadth of Network

GLG’s expert network has top professionals in every sector or industry across the globe and recruits thousands of experts daily. As the most varied source of first-hand expertise, GLG can help you find experts in any field or at any level of seniority, from C-level executives to hands-on practitioners.

Support Teams

GLG’s dedicated private equity teams are thought partners to the firms they service and have a thorough understanding of their clients’ research needs and specialized knowledge of the types of experts who can help them. GLG teams can also help you identify expert populations that would help your research needs.

Comprehensive Research Offerings

In addition to expert calls, GLG has other integrated qualitative and quantitative research solutions that allow you to go deeper in your research, including B2B consumer surveys, product focus groups, and moderated expert calls. GLG also can help you with executive placement services to assist in finding and placing effective directors/specialized advisors for your portfolio companies.

Best-in-Class Compliance Framework

As the category pioneer, GLG has led the industry in the establishment and development of compliance standards for expert networks. With GLG’s industry-leading compliance protocols around expert calls, you can rest assured that you can get the insights you need in a trusted and protected environment.

Conclusion

In the fast-paced and highly competitive world of private equity, the depth and quality of your research can significantly impact your investment outcomes. Expert calls offer unparalleled insights that go beyond traditional research methods, providing you with real-time, nuanced information directly from industry leaders and professionals. By integrating expert calls into your research strategy, you can make more informed decisions at every stage of the investment cycle, from identifying opportunities to enhancing post-investment value.

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Looking to learn more? Read the case studies below to discover how leading private equity firms have successfully leveraged GLG Expert Calls.

Industry Analysis: Gig-Economy Delivery Platform
Industry Analysis: Pharmaceutical Services Assets
Company Analysis in the Aerospace Industry

GLG has a suite of solutions geared toward giving PE firms the edge they need to build conviction quickly. Our focus is on building flexible, agile solutions that support key phases of the deal process. We connect PE firms with first-hand experience in a particular space or target, including former employees of a specific company or its competitors, customers, suppliers, or regulators. Our work includes fully managed market assessments and company research studies. If you would like to learn more about how GLG works with PE firms, please contact us at the form below.