Private equity firms operate under compressed timelines, limited information access, and high capital risk. In recent years, expert networks for private equity have become an essential resource for connecting investors with the right advisors. A single diligence call with the right industry expert can validate or invalidate months of investment thesis development.

Expert networks provide private equity firms with on-demand access to industry operators, former executives, customers, suppliers, and competitors who can verify investment hypotheses. The best PE firms integrate expert calls systematically across the entire deal lifecycle, from initial sourcing through post-acquisition value creation.

This guide explains how private equity firms use expert networks across each stage of the investment process, how to structure expert calls to extract decision-quality insights, compliance requirements specific to PE work, and how to measure the ROI of expert diligence in an investment context.

For a full guide on everything expert networks, read our article here.

Why Private Equity Firms Depend on Expert Networks

• Private equity diligence operates under constraints that make expert networks strategically valuable.
• Deal timelines compress information gathering into weeks.
• Management teams control information flow and present optimized narratives.
• Financial models require validation through operational reality checks that only practitioners can provide.

The Information Asymmetry Problem

• Management teams in carve-outs, buyouts, and growth equity deals control the diligence narrative.
• They structure data room content, script management presentations, and answer questions selectively.
• Expert networks allow PE firms to triangulate management claims against independent operator perspectives, competitor intelligence, and customer feedback.

The Speed Problem

• Competitive auction processes force PE firms to complete diligence in 4 to 8 weeks from signed NDA to binding offer.
• Traditional research methods like industry reports, consultant studies, and internal analysis cannot deliver the depth and speed required.
• Expert calls provide targeted insights in days rather than weeks.

The Specialization Problem

• PE firms invest across industries, geographies, and business models that change every deal cycle.
• Internal teams cannot maintain deep expertise across every sector they evaluate.
• Expert networks provide on-demand access to specialists who understand the operational nuances, competitive dynamics, and technology trajectories specific to each target company.

Expert Networks Across the Private Equity Deal Lifecycle

Leading PE firms integrate expert calls systematically across five stages of the investment process. Each stage has distinct research objectives, different expert profiles, and specific insight requirements.

Stage 1: Deal Sourcing and Opportunity Identification

Expert calls at this stage help PE firms identify attractive sectors, understand market dynamics, and build conviction before engaging with specific targets.

Research objectives:

• Identify high-growth sectors or consolidation opportunities.
• Understand structural tailwinds or headwinds affecting industry attractiveness.
• Build sector theses that guide origination efforts.
• Identify potential acquisition targets or add-on candidates.

Expert profiles:

• Industry analysts who track market trends and competitive dynamics.
• Former executives from leading players who understand consolidation patterns.
• Technology vendors serving the industry who see adoption patterns across customers.
• Investors or advisors who have completed transactions in the sector.

Key questions to ask:

• Which sub-segments within this industry are growing fastest and why?
• What are the primary drivers of profitability differences between top and bottom quartile players?
• Which business models are gaining share versus losing share, and what is driving the shift?
• What operational or technology changes are reshaping competitive positioning?

Stage 2: Preliminary Diligence

Once a specific target is identified and initial NDAs are signed, expert calls shift from sector-level exploration to company-specific validation. The goal is to build initial conviction or identify disqualifying risks.

Research objectives:

• Validate management’s market position claims and competitive differentiation story.
• Identify operational strengths or weaknesses not visible in financial data.
• Assess customer satisfaction, pricing power, and retention dynamics.
• Understand key person dependencies and organizational depth.

Expert profiles:

• Former employees from the target company who understand operations firsthand.
• Customers who can assess product quality, service levels, and competitive alternatives.
• Competitors who can evaluate the target’s true market position.
• Suppliers or channel partners who understand the target’s business model execution.

Key questions to ask:

• How does the target compare to its top two competitors on product quality, customer service, and pricing?
• What would cause a customer to switch from the target to a competitor or vice versa?
• What are the target’s biggest operational constraints that limit growth or margin expansion?
• How accurate is management’s characterization of market share and competitive positioning?

Stage 3: Deep Dive Diligence

During exclusivity or late-stage competitive rounds, PE firms run intensive diligence workstreams. Expert calls at this stage are highly targeted and structured to validate specific investment thesis elements or test identified risks.

Research objectives:

• Quantify market size, growth rate, and competitive intensity with precision.
• Validate revenue and EBITDA bridge assumptions that underpin valuation models.
• Test operational improvement hypotheses and value creation initiatives.
• Identify deal-breaker risks that would justify walking away or repricing the transaction.

Expert profiles:

• Senior operators who have held roles similar to what the PE firm plans to implement.
• Industry experts who can quantify market dynamics with data.
• Technical specialists who can assess technology stack, R&D productivity, or manufacturing efficiency.
• Former employees from specific departments relevant to value creation plans (sales, operations, IT, procurement).

Key questions to ask:

• Can the target realistically achieve X percent revenue growth given current sales capacity, product pipeline, and competitive intensity?
• What would it take operationally to expand EBITDA margin from Y percent to Z percent, and what are the realistic timelines and risks?
• How do customers in this industry typically respond to price increases, and what price elasticity should we assume?
• What organizational capabilities would need to be built or hired to execute the value creation plan?

Stage 4: Investment Committee Preparation

Before presenting deals to investment committees, PE teams use expert calls to stress-test their investment thesis. These calls often focus on downside scenarios and risk mitigation.

Research objectives:

• Identify the most likely downside scenarios and their probability.
• Test sensitivity assumptions in financial models against operational reality.
• Understand precedent transaction outcomes and lessons learned.
• Build conviction around mitigants for identified risks.

Expert profiles:

• Investors who have owned or evaluated similar assets and can discuss what went right or wrong.
• Former executives who have managed businesses through economic downturns or industry disruptions.
• Advisors or consultants who have worked on similar transformations and can discuss success rates.

Key questions to ask:

• In a recession or demand downturn, how quickly can costs be flexed down and what is the realistic trough EBITDA margin?
• What risks did management not disclose or understate that we should be concerned about?
• What have been the most common reasons similar investments failed to meet return expectations?
• How realistic is our base case given what you have seen in comparable situations?

Stage 5: Post-Acquisition Value Creation

After closing, PE firms use expert networks to support portfolio company value creation initiatives. These engagements are often longer-term and may involve embedded consultants.

Research objectives:

• Implement operational improvements identified during diligence.
• Source add-on acquisition targets and validate their strategic fit.
• Build organizational capabilities through advisor relationships or interim executives.
• Navigate unforeseen challenges that emerge post-close.

Expert profiles:

• Interim executives who can embed within portfolio companies for 6 to 12 months.
• Advisors who can serve on advisory boards or provide ongoing strategic counsel.
• Specialists who can lead specific initiatives.

Key questions to ask:

• What are the first 100 days priorities to stabilize operations and build credibility with the team?
• What are realistic timelines for implementing the operational improvements outlined in the investment thesis?
• Which value creation initiatives should be sequenced first to build momentum and early wins?

How to Structure Expert Calls for Investment Decisions

The quality of insights from expert calls depends on how the call is structured, what questions are asked, and how experts are guided through the conversation. PE firms that treat expert calls as passive information downloads miss half the value. The best firms use expert calls as active hypothesis testing and conviction building.

Start with Clear Hypotheses, Not Open-Ended Exploration

Effective expert calls begin with a specific hypothesis to test rather than a general request. Compare these two call briefs:

Weak brief:

“We are evaluating a B2B SaaS company in the HR tech space. We would like to understand the competitive landscape, growth drivers, and any risks we should be aware of.”

Strong brief:

“We are evaluating an applicant tracking system vendor. Management claims 30 percent annual growth is sustainable based on increasing enterprise adoption of specialized ATS versus modules within broader HRIS suites. We need to validate whether this shift is real, durable, and large enough to support management’s forecast. Specifically, we want to test whether enterprises are actually unbundling HRIS suites or just piloting standalone ATS without replacing existing systems.”

The strong brief gives the expert a specific claim to validate or challenge. This leads to targeted insights.

Ask for Evidence, Not Opinions

Experts provide the most value when they share what they have observed directly. Shift questions from opinion-based to evidence-based:

Weak question:

“Do you think this company has strong competitive differentiation?”

Strong question:

“When you evaluated vendors in this category, what specific product features or service elements caused you to choose one over another? Can you walk me through the last purchasing decision you made and what drove the outcome?”

Evidence-based questions produce concrete examples that can be pressure-tested against management claims.

Probe for Disconfirming Evidence

Confirmation bias is the enemy of good diligence. Deliberately ask questions designed to find reasons not to do the deal, not just validate the investment thesis.

Disconfirming questions:

• What would cause you to switch away from this vendor or stop using this type of product entirely?
• What operational constraints would prevent this company from scaling as fast as management claims?
• What risks is management likely understating or not disclosing?

Use Expert Calls to Calibrate Model Assumptions

Expert calls are most valuable when they help PE teams assign realistic ranges to financial model assumptions. After each call, the diligence team should update model inputs based on what was learned.

Model-calibrating questions:

• In your experience, how long does it typically take a new sales rep to ramp to full productivity in this industry? (Calibrates sales hiring assumptions)
• What is a realistic churn rate for customers in this segment? What drives customers to leave? (Calibrates retention assumptions)
• How much pricing power do companies in this category actually have?
• What gross margin range is typical for companies at this scale in this business model? (Calibrates profitability assumptions)

Compliance Requirements for PE Expert Network Use

Private equity firms face specific compliance obligations when using expert networks. Material non-public information, conflicts of interest, and insider trading risk are central concerns.

Material Non-Public Information (MNPI) Risk

PE firms investing in public companies or working on deals where target companies have relationships with public entities face MNPI risk. If an expert inadvertently discloses material non-public information during a call, the PE firm may be prohibited from trading or required to disclose the information publicly.

MNPI mitigation practices:

• Pre-call compliance screening: Verify experts are not insiders with access to confidential company information.
• Call scripting: Begin every call with explicit MNPI warnings and boundaries.
• Real-time monitoring: Have compliance professionals monitor calls in real time to flag risks as they arise.
• Post-call review: Review transcripts for potential MNPI disclosure before information is shared.

Conflict of Interest Screening

Experts who work for competitors, customers, or suppliers of the target company may have conflicts of interest that bias their perspectives or create confidentiality concerns. Strong compliance processes identify these conflicts.

Conflict screening questions:

• Do you currently work for or advise any companies in this industry?
• Do you have financial relationships with competitors, customers, or suppliers of the target company?
• Have you signed any agreements that would restrict your ability to discuss this topic?
• Do you have any personal relationships with management team members or board members of the target?

Documentation and Audit Trail Requirements

PE firms should maintain audit-ready documentation of all expert engagements, including signed NDAs, conflict-of-interest certifications, call transcripts, and compliance sign-offs. This documentation protects the firm in the event of regulatory inquiry or litigation.

Required documentation:

• Signed non-disclosure agreements for every expert.
• Conflict-of-interest questionnaires completed.
• Call transcripts or detailed notes with timestamps.
• Compliance approval records showing internal review process.
• Expert vetting records confirming background and credentials.

Measuring ROI of Expert Networks in a PE Context

PE firms should track the ROI of expert network spend across three dimensions: deal velocity (speed to conviction or exit), decision quality (avoiding bad investments and identifying winners), and value creation impact (post-close performance improvement).

Deal Velocity Metrics

Expert calls allow PE firms to build conviction faster or exit deals earlier. This speed has economic value by reducing opportunity cost and enabling teams to focus on higher-probability deals.

Metrics to track:

• Time from initial evaluation to IC presentation (with versus without expert network use).
• Percentage of deals exited during preliminary diligence after expert calls revealed disqualifying issues.
• Number of deals passed on after expert calls challenged management claims that would have been accepted otherwise.

Decision Quality Metrics

The highest ROI comes from avoiding bad investments or identifying winners that others miss. Expert calls that reveal operational risks, competitive vulnerabilities, or market headwinds can save firms from deploying capital into underperforming assets.

Metrics to track:

• Percentage of completed deals where expert calls identified risks that were not disclosed by management or visible in financial diligence.
• Correlation between expert call insights and post-close performance (did deals where experts raised concerns underperform versus deals where experts validated the thesis?).
• Post-mortem analysis of passed deals that were later acquired by competitors (did expert calls correctly identify issues that led to underperformance for acquirers?).

Value Creation Impact

For portfolio companies, expert networks support value creation by helping implement operational improvements, source add-on acquisitions, and navigate post-close challenges. ROI is measured by linking expert engagements to specific value creation initiatives.

Metrics to track:

• EBITDA impact of operational improvements informed by expert recommendations.
• Success rate of add-on acquisitions sourced or validated through expert calls.
• Cost savings from expert-guided initiatives (e.g., supply chain optimization, pricing improvement, sales force productivity).

Case Study: Industrial Carve-Out

Situation:

A mid-market PE firm evaluated a $400 million carve-out of an industrial distribution business from a Fortune 500 parent company. Management projected 15 percent EBITDA margins within two years based on eliminating corporate overhead and optimizing pricing. Financial diligence validated the overhead savings but could not assess pricing power or customer retention risk.

Expert network approach:

The PE firm conducted 12 expert calls across three categories: former employees of the target business who understood operations and culture, customers who could assess service levels and pricing sensitivity, and competitors who could evaluate market positioning. Calls were structured to test three hypotheses: overhead elimination was achievable, pricing optimization was realistic, and customer relationships would survive ownership transition.

Key insights from expert calls:

• Former employees confirmed that corporate overhead charges were inflated and could be eliminated without operational impact. Validated management’s $8 million overhead savings assumption.
• Customers revealed that 40 percent of the business was commoditized products, where pricing power was limited. Management’s pricing optimization plan assumed 3 to 5 percent increases across the entire product portfolio, which customers said would drive them to competitors for commodity SKUs.
• Competitors noted that the parent company had underinvested in digital ordering capabilities and that the business was losing share to more tech-enabled distributors. Management had not disclosed this competitive dynamic.

Outcome:

The PE firm revised its base case EBITDA margin from 15 percent to 12 percent after adjusting for limited pricing power on commodity products and required technology investment. The firm rebid the transaction at a 20% lower valuation and passed when the seller would not adjust the price. The asset was acquired by another PE firm at the original valuation and underperformed. Expert calls saved the firm from deploying $200 million into an underperforming asset.

Common Mistakes PE Firms Make with Expert Networks

Mistake 1: Using Expert Calls Too Late in the Process

Many PE firms wait until deep diligence to engage networks, missing the opportunity to exit bad deals during preliminary evaluation.

Mistake 2: Treating Expert Calls as Information Downloads

Passive expert calls, where PE teams listen without challenging or probing, produce generic industry commentary. The best firms structure calls around specific hypotheses and actively test assumptions.

Mistake 3: Not Integrating Expert Insights into Financial Models

Expert calls that do not change financial model assumptions or investment thesis elements are wasted. After every expert call, the diligence team should update base case, upside, and downside scenarios based on what was learned.

Mistake 4: Overweighting Single Expert Perspectives

No single expert has complete information or unbiased views. Leading PE firms triangulate across 5 to 15 expert perspectives per deal to identify consensus views and outlier opinions that require deeper investigation.

Mistake 5: Weak Compliance Processes

PE firms that skip MNPI screening, conflict checks, or documentation requirements expose themselves to regulatory risk and litigation. Compliance rigor must match the stakes of the investment decision.

How Infoquest Serves Private Equity Firms

Infoquest supports private equity firms across the entire deal lifecycle with a specialized focus on custom-sourced experts for niche industries and emerging geographies where database networks have limited coverage. Over 70 percent of the firm’s PE client engagements involve emerging market diligence in the GCC, Southeast Asia, and other regions underserved by legacy expert network providers.

Speed Without Compromising Match Quality

PE deal timelines demand fast expert delivery without sacrificing relevance. Infoquest delivers verified experts in under 2 hours by combining AI-assisted search tools with dedicated research teams rather than relying on databases.

Cost Efficiency for High-Volume DD Programs

Infoquest’s flexible pay-per-call and credit models, rather than annual subscription commitments is 20 to 30 percent below other networks.

Embedded Support for Portfolio Company Value Creation

Beyond transaction diligence, Infoquest supports portfolio companies through interim executive placements, advisory board member sourcing, and ongoing expert relationships that extend beyond single-call engagements. This continuity allows experts to develop deeper context and provide more valuable counsel over time.

Frequently Asked Questions

How many expert calls should a PE firm conduct per deal?

Leading PE firms conduct 5 to 15 expert calls during deep diligence for mid-market transactions and 15 to 30 calls for large-cap deals. The exact number depends on deal complexity, industry familiarity, and specific risks identified. At a minimum, conduct enough calls to triangulate perspectives across customers, competitors, former employees, and industry analysts. Exit the expert diligence process when additional calls are not changing your investment thesis or risk assessment.

What compliance standards should PE firms require from expert network vendors?

Require dedicated compliance teams with PE-specific experience, pre-call MNPI screening, conflict-of-interest verification, compliance-approved call scripts, real-time call monitoring or post-call transcript review, and audit-ready documentation with signed NDAs and conflict certifications. For deals involving public companies or regulated industries, ask vendors to provide compliance certifications and describe their escalation process when potential MNPI is identified.

How do PE firms measure ROI on expert network spend?

Track three metrics: deal velocity (time saved exiting bad deals or building conviction faster), decision quality (correlation between expert insights and post-close performance), and value creation impact (EBITDA improvement from expert-guided initiatives). Leading firms conduct post-mortems on passed deals to assess whether expert calls correctly identified issues, and on completed deals to measure whether expert-validated assumptions proved accurate.

Should PE firms use database networks or custom-sourcing networks?

Use both strategically. Database networks work well for mainstream industries in North America and Western Europe, where large expert pools exist. Custom-sourcing networks like Infoquest deliver better results for niche industries, emerging geographies, or highly specific expert requirements where database composition is thin. Many PE firms maintain relationships with both types of vendors and route projects based on fit.

Conclusion: Expert Networks as Competitive Advantage in PE Diligence

Private equity firms that integrate expert networks systematically across the deal lifecycle gain material advantages over competitors who treat expert calls as optional or late-stage activities.

The best PE firms use expert networks not as passive information sources but as active tools for hypothesis testing. They structure calls around specific claims to verify or challenge, probe for disconfirming evidence, and update financial models based on what experts reveal about operational reality.

For firms investing in niche industries or emerging geographies, vendor selection matters. Custom-sourcing networks like Infoquest provide precision matching, faster turnaround, and better coverage in markets underserved by database-driven alternatives. Combined with PE-specific compliance infrastructure and flexible pricing models, custom sourcing delivers better ROI for diligence-intensive investment strategies.

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