Blogs
Unless you’ve had your head in an actual book this summer, you’ve seen all the press about the rise of artificial intelligence (AI). We decided to put one popular chatbot to the test and asked ChatGPT to write a blog on a topic we know well — customer feedback during investor due diligence. Not surprisingly, there were some hits and misses when using AI to write this type of content. Below you can see the actual Chat GPT blog. But first, our assessment and some things to watch for if you choose to use AI.
If you are buying a SMB (Small or Midsize Business) and you ask for feedback from the seller’s customer base, you understand it is a reasonable request – but it can be scary for the seller. For example, what happens if a competitor obtains that customer list? Mayfield Consulting, as a third party, has gained this feedback for hundreds of buyers. We capture in-depth feedback from the sellers’ customer base, in the name of the seller. This feedback can be invaluable to the seller, whether the deal goes through or not. Typically, the buyer offering to share the feedback with the seller is the key to gaining their trust to move forward.
Armed with superior knowledge about the customer base, an investor gains confidence, lowers risk, and increases negotiating leverage for pricing and terms prior to closing. Whether investors are PEs, VCs, searchers or strategic buyers, in-depth, objective customer feedback provides superior insight compared to filtered information from sellers.
Over many years of gaining in-depth customer feedback for clients, Mayfield Consulting has noticed that often what our client tells us is not what their customers tell us.
Interviewing your target company’s customer base is a pivotal step in understanding the value in your potential investment. The way you gain feedback can be critical.
