Technology Makes Due Diligence as a Service Possible

Due Diligence

Over the last 20 years there has been an explosion in the number of technologies being offered as services. The entire as-a-service paradigm has experienced tremendous growth. Even things that existed before the as-a-service revolution has been brought on board. Take due diligence, as an example.

Due diligence is the process of evaluating a particular asset to determine its current market value. It is almost always understood in a business setting. For example, investors perform due diligence before putting money into new opportunities. And now, companies like Utah-based Mezy are offering due diligence-as-a-service (DaaS).

It should be noted that Mezy does what it does using the latest technology. Theirs is a data-driven approach fueled by algorithms capable of retrieving data, analyzing it, and compiling reports that clients use to make business decisions.

Technology and Data

We commonly think of technology and data as going hand-in-hand. They do to a certain extent, though data existed long before there were computers capable of crunching it. Data is essentially any form of information stored and analyzed for any purpose. That said, technology has changed everything we knew about data prior to it.

It was the introduction of the personal computer that made the difference. Prior to personal computing, enterprise computers were big enough to comprise entire buildings. It took a lot of hardware and raw power to crunch even the smallest amount of data.

Personal computing scaled everything down to units that could fit on a desktop. And once that scaling occurred, technology companies began investigating ways to make it more powerful. Some 40 years later, we are awash in data technologies capable of doing things we only dreamed of back in the 1970s and 80s.

The fact that big data even exists is a testament to how far technology has come. But in terms of power and potential, even the concept of big data is yesterday’s news. Today it is all about artificial intelligence and deep learning. It is about algorithms and analysis. That is where diligence providers like Mezy earn their keep.

Automated Due Diligence

Mezy’s due diligence-as-a-service is founded on a technology platform. That platform combines advanced algorithms with tried-and-true financial analysis of the data and information clients need. From valuation reports to teasers, Mezy’s diligence platform has brought a level of automation to a very elementary exercise.

Prior to technology, gathering intelligence data was a painstaking manual process. It took a long time to get one’s hands on SEC filings before pouring through them line-by-line and page-by-page. Data had to be extracted and analyzed by human experts who left no stone unturned.

Thanks to technology, much of the labor involved in data gathering and analysis can be completely automated. A technology-based diligence platform can quickly retrieve data from online sources. It can feed that data into sophisticated algorithms that know how to parse and analyze it. It can then spit out reports that human experts can go over with a fine-tooth comb.

Faster and Better Due Diligence

Technology has made due diligence faster and better. It has replaced much of the unnecessary manual labor with computerized automation. What it has not done is remove the human element entirely. That’s because no amount of automation and artificial intelligence can replicate the human brain.

In the end, technology has made due diligence-as-a-service possible. But making it all work still requires human participation. That is why companies like Mezy will never go extinct. Technology tools are just that: tools. They are tools used by experienced due diligence providers to offer valuable services to investors, financial advisors, and entrepreneurs.

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