Richard Wilson: when an expert reviewer asks to join the investment
Richard described asking a niche expert to review a potential investment, then observing whether the expert wanted to participate alongside him.
The expert filled a specific knowledge gap
He raised this question for an investor considering a business outside the investor's most familiar niche. The expert would have the industry experience the investor wished to bring to the review. Richard also mentioned paying for that person's time.
Interest followed the examination
An expert asking to participate was a favorable sign in Richard's description. He also discussed reviewing the investment together. The sequence matters: the interest emerged from examining the business. He did not present the expert's enthusiasm as a substitute for that examination.
In Richard C. Wilson's words
"Can you pay them for their time? And when you do, do they ask if they can be part of the deal" (Richard C. Wilson, Due Diligence mini-series)
How to use this
- Define the industry question for which an expert's experience is needed.
- Separate the expert's review findings from any later interest in participating.
Questions and answers
Why did Richard bring an expert into the example?
To supply focused industry experience the investor did not have.
What response did he describe as a good sign?
The expert wanting to participate after reviewing the opportunity.