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5 Trends in Due Diligence surveys of different industries

Trends in due diligence surveys for different industries explained

GrapeData
Oct 7, 2022
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What are Due Diligence surveys?

The way that information is generated and transmitted has drastically evolved since the beginning of the 20th century. Surveys are especially widely used to transmit information about anything and everything. Due diligence surveys are a critical component of any merger and acquisition (M&A) or divestiture transaction. They serve to reveal potential legal and regulatory problems that may exist in the target company's operations. Not only do they discover legal problems, but they are also used in product-market-fit decisions. Generally, businesses are in need of regular information from time to time. This type of information can include market entry, product evaluation, or getting insights into customers.

Due Diligence surveys may also uncover liabilities not readily apparent from financial accounting records or other publicly available information. These due diligence surveys vary widely across industries, with some being more complex than others. If you'd like to learn more about how due diligence surveys are used for investment purposes, check out our article on our blog.

1. Healthcare and pharmaceuticals due diligence survey trends

Healthcare has been a big area of focus for due diligence surveys, as it's a highly regulated industry with many standards to follow.  The healthcare industry uses due diligence surveys extensively. Pharmaceutical companies also fall under this heading, though their regulations vary by country and drug type. Because healthcare is so often affected by governmental regulation, there are many different types of companies in this sector. Additionally, they may have very different practices when it comes to data security and handling sensitive information.

For example, the European Union has different rules about how companies can use data than the US does. Many pharmaceutical companies have their own security practices. There are also some notable differences between them—especially when it comes to handling sensitive information like patient records and clinical trials. Due diligence surveys take into account all these practices and rules. 

2. Financial services DD survey trends

Banks and other financial services firms also conduct a due diligence survey of their financial health. After the 2008 financial crisis, there has been increased scrutiny of the financial services industry. For a review of the crisis, check out this article by Investopedia. As such, banks and other financial institutions must be able to prove their financial health. In order to do so, they must conduct a due diligence survey.

Due Diligence surveys are required by banks and other financial institutions because they need proof that their clients are in good standing before lending them money or approving transactions on their behalf.

What's more, is that earlier financial services were the only industry that used due diligence surveys. Expert networks were initially focusing on financial services when they popped up. However, now almost every industry needs due diligence surveys. This is because they provide a deeper level view of a company, a product, or a market. Additionally, there are several tools in due diligence, but surveys play a special role. Surveys are useful in analysing data quickly and efficiently to generate qualitative or quantitative insights. Another tool in due diligence is expert networks. These networks serve as a platform to connect companies with knowledgeable experts in any industry.

3. IT Industry's use of due diligence surveys 

Data security and privacy are at the forefront of most businesses’ minds these days, especially with the rise of GDPR. Because of this, it’s important to ensure that your organisation has a solid understanding of how data is handled within your organisation and where it resides. To do so, you will need to identify what third-party vendors have access to your data, where that data is stored (on servers or in cloud storage), and what security protocols are in place for its storage. In addition, you should be able to provide assurances about whether any breaches have occurred in recent years as well as descriptions of any cyber vulnerabilities discovered during testing or due diligence reviews.

Companies need to take extreme care to follow all data protection laws in their industry. For instance, Instagram was recently fined €405 million for violating data privacy laws by the Irish Data Protection Commission. 

The best way to do this is by conducting due diligence surveys. The key is to take a proactive approach by identifying the risks that are most relevant to your organisation and then developing a plan for mitigating them.

4. Food and beverage DD survey Trends

Due diligence surveys are important for food and beverage companies, as they can help detect issues in your supply chain. In this industry, there are several risks to be aware of. For example, food safety incidents can cause brand damage if not handled appropriately. The same goes for environmental issues such as waste disposal or water pollution. Furthermore, audits might reveal that your contracts with suppliers are not binding or enforceable under the law; thus you may lose valuable intellectual property rights (IPR). For a guide on how to protect your IPR, check out this article by Forbes.

To mitigate these risks, you should conduct due diligence surveys regularly and pay attention to any potential issues uncovered by them.

5. Energy Due Diligence Survey Trends

Energy is a large industry, and it requires due diligence. It can be found in many forms, such as oil and gas, renewable energy sources (such as solar and wind), other types of power generation that do not use fossil fuels (such as nuclear power or geothermal), or even electricity transmission & distribution. You may need to do due diligence on different industries all at once if the company you are looking at operates in multiple areas of the world.

For example, a mining company might operate in coal mines but also have investments in renewable energy sources such as wind farms or solar farms. If this is the case then it's important for them to know how much they spend on each type of project so they can make sure they're using their resources wisely.

Due diligence is also important for energy companies that are looking to buy or sell another company. If you're thinking about buying out another company, you need to make sure that all aspects of their business are in order and that they aren't hiding anything from you. You also need to know how much debt the company has on its books. In this way, you can decide whether or not it would be worth buying them out.

Due Diligence survey trends can change drastically even over a few months' time

Due diligence surveys can be conducted for many different industries and are a great way to determine the risk of a deal. While some due diligence surveys are more common than others, there are still some trends that you should keep in mind as you search for a professional who can help you with these matters.

It's true that due diligence survey trends can change drastically even over a few months' time. It is also true that some of these changes can happen within days or even hours. For this reason, it's important for prospective buyers to stay up-to-date on what's going on in their industry. This is done in order to avoid any surprises after they've already signed their contract with another company!

Conclusion

We have seen that the trends in due diligence surveys for different industries are changing drastically. For instance, the use of online surveys, expert networks, and focus groups has been increasing over the years. This shows us how quickly things can change and how important it is to stay on top of them so you know what you’re getting into before signing any contracts or making any investments.

There are many due diligence surveys benefits, which is why they are so popular these days. First, they provide easy access to a host of knowledgeable insights to gather data. Second, they help source in-depth knowledge that takes years to build. Third, they connect businesses to on-the-ground data in any industry or domain.

Want to learn more about due diligence surveys? Contact us today at sales@grape-data.com to see how we can help.