Why Value-Added Expert Networks Fall Short on M&A Target Lists

Private equity firms often turn to value-added expert networks for support during deal evaluation. These firms position themselves as more than just call facilitators. Alongside connecting deal teams with industry experts, they promise added value, things like M&A target lists, market maps, and competitive landscapes.

On the surface, this seems like a win. Instead of hiring a research team or outsourcing to a dedicated provider, a firm already on retainer can deliver a list. But there’s a structural problem: building rigorous, accurate M&A target lists isn’t their core competency.

The Core Issue

Value-added expert networks make money by connecting clients with experts. That’s their primary product, and it’s where they dedicate their best resources. When it comes to producing M&A target lists or market maps, these tasks are often treated as ancillary services. They’re bundled into the retainer, handled by junior staff, and not supported by a dedicated research process.

The result? Lists that are surface-level, incomplete, and not built to the standard a deal team actually needs.

The Cost of "Free" Lists

Because these lists are not billed separately, they can feel like a free add-on. But the hidden cost is significant. Relying on incomplete or poorly structured lists means deal teams risk missing key targets, wasting time on irrelevant companies, or redoing the work entirely in-house.

That’s an expensive trade-off when the purpose of outsourcing in the first place is to free up internal bandwidth.

What Dedicated Research Looks Like

M&A target list building is not just about pulling names from a database. It requires:

·      A clear understanding of the investment thesis

·      Qualitative research that goes beyond what databases capture

·      Structured vetting of company fit based on strategy, size, ownership, and end markets

·      A process designed to ensure completeness, accuracy, and usability for sourcing or diligence

This is the work that requires focus and a repeatable methodology. It’s difficult to replicate when list-building is treated as an afterthought.

The Bottom Line

Value-added expert networks are excellent at what they were designed to do: connecting private equity deal teams with industry experts and advisors. But when they stretch into areas like M&A target list building and market mapping, the output often lacks the rigor and precision needed to drive sourcing and diligence.

If your team is relying on value-added expert networks for lists that inform your deal flow, it might be time to consider a dedicated alternative. I would be glad to discuss how Agathon can help. yash@agathonrp.com