Most resourceful diligence?

Based on the most helpful WSO content, here are some examples of resourceful diligence techniques that go beyond the usual expert calls:

1. Creative Research:

   • Conducting diligence trips to the company to "kick the tires."
   • Meeting with management teams for one-on-one discussions about strategy and operations.
   • Calling stores (e.g., every Walgreens in a region) to analyze inventory or specific SKUs for insights.

2. Alternative Data Analysis:

   • Using alternative data sets to decompose revenue into price and volume, providing a clearer picture of what's driving the numbers.
   • Employing unique datasets to identify catalysts, assess timing, and evaluate risk/reward scenarios.

3. Iterative and Pattern-Based Research:

   • Leveraging pattern recognition from previous scenarios to identify mispriced distributions of outcomes or major inflection points.
   • Using insights from research on unrelated ideas to inform the current thesis.

4. Deep Diligence:

   • Going beyond public information by speaking to insiders, former employees, or competitors via LinkedIn or expert networks like GLG.
   • Conducting background checks on key management members and reviewing IT systems, insurance, and environmental factors.

5. Customized Vendor Management:

   • Managing third-party vendors for specific diligence areas like tax, accounting, legal, and industry studies.
   • Tailoring the scope of diligence based on past deal scopes and unique aspects of the current opportunity.

6. Unconventional Approaches:

   • Analyzing historical performance and growth potential in unique ways, such as breaking down customer and vendor relationships or assessing scalability in capital-intensive contexts.
   • Reviewing niche aspects like product liability risks or intellectual property issues outside the normal scope.

These methods showcase how diligence can be both creative and resourceful, providing a competitive edge in investment decision-making.

Sources: https://www.wallstreetoasis.com/forum/private-equity/then-and-now-compbanker?customgpt=1, Day in the Life: Hedge Fund Associate - Investment Banking Background, https://www.wallstreetoasis.com/forum/investment-banking/breaking-into-private-equity-from-banking?customgpt=1, Advice for New Analysts Seeking PE Exits, Give me your best examples of first hand research / edgy view!