Announcement: DealPotential has closed a $1.1M seed bridge round at a $15M valuation!

How one PE firm used DealPotential's ex-employee data to uncover red flags early

Mira Tomic September 25, 2025

How one PE firm used ex-employee data to uncover red flags early

How one PE firm used ex-employee data to uncover red flags early

Table of contents

When a private equity firm looks at a target company, the numbers tell only part of the story. Financials can be polished, management decks are always persuasive, and references often say the “right” things. But the real truth about a company’s culture, leadership, and execution often lives with people who are no longer there.

That’s where ex-employee data in DealPotential becomes a must-have.

DealPotential’s ex-employee insights

When the firm opened DealPotential, they didn’t just see a list of current key employees. They also uncovered a full roster of ex-employees, each with a name, LinkedIn profile, their former role at the company, and where they work today.

That view instantly changed the dynamic of their diligence. It gave them the ability to:

  • Spot abnormal leadership turnover patterns

  • Reach out to ex-staff for candid insights

  • Track where top talent moved next

  • Test management’s story against career data

Why they used it

The firm was evaluating a mid-market B2B services company. On paper, everything looked solid: revenue up, marquee clients, confident management. But churn rates in certain departments raised quiet questions.

Instead of relying solely on management explanations, the team pulled up the ex-employee data in DealPotential and reached out to select former staff for unfiltered perspective.

What they found

Patterns emerged quickly:

  • High turnover in sales leadership every 12–18 months, far above industry norms.
  • Consistent complaints about unclear strategy and siloed decision-making, particularly between product and sales.
  • Positive reviews of middle management execution, suggesting the issues were rooted at the very top.

How it helped them

Armed with this intelligence, the PE team:

  • Pressed management with pointed questions on leadership and strategy

  • Reframed their thesis to focus on governance fixes

  • Negotiated better terms with proof-backed leverage

Direct conversations with ex-employees added nuance and context, validating trends and surfacing issues that raw data couldn’t.

Why it matters

Ex-employee data doesn’t replace financial diligence; it deepens it. By surfacing lived experiences at scale and hearing directly from former employees, PE firms can uncover risks (and opportunities) that spreadsheets alone can’t show.

For this firm, the difference was weeks of analyst time saved, fewer blind spots, and a more confident deal execution.

Because in today’s market, conviction isn’t built on having more data; it’s built on having the right intelligence.

Why it matters

The real truth about a company often lives with people who are no longer there.

SHARE:

Ready to invest with precision?

Book a free demo with DealPotential and get real-time insights on the next billion-dollar opportunities.

Recent Posts

Terms & Conditions

DealPotential Investment Intelligence Platform Proposal Agreement

WHEREAS, the Seller agrees to provide access to the DealPotential Investment Intelligence Platform,

WHEREAS, the Client agrees to purchase the DealPotential Investment Intelligence Platform according to the terms and conditions laid out in this contract. 

THEREFORE, in consideration of the mutual agreement made by the parties hereto, the Seller and the Purchaser (individually, each a “Party” and collectively, the “Parties”) agree to the following:

      1. 1. Service and Product Description:
      DealPotential Market Intelligence Platform (“Platform”) is a Software-as-a-Service (SaaS) offering that provides subscribers with access to company data, market data, insights, and analytics.

2. Subscription: By subscribing to the Platform, you agree to pay the monthly or yearly subscription fee, as specified in your subscription plan.

3. Payment: Payment is due monthly in advance and processed via Stripe. The subscription renews automatically until cancelled.

4. Cancellation: You may cancel your subscription at any time, and it will take effect at the end of the current billing cycle. No refunds will be provided for partial months. 

5. Data Privacy: We are committed to safeguarding your data. Please refer to our Privacy Policy for details on data handling and protection. 

6. Intellectual Property: All content, data, and reports provided by the Platform are protected by intellectual property laws and are for your internal use only.

7. Termination: We reserve the right to terminate your access to the Platform for any violation of these terms or for any reason at our discretion.

8. Governing Law: These terms are governed by the laws of Sweden, and any disputes shall be subject to the exclusive jurisdiction of the courts in Sweden.

10. Disclaimer: We disclaim all responsibility for any decisions made by users based on the data provided in our platform. All investment decisions are solely the responsibility of the user. We are not involved in any user decisions and only provide data and assessments for informational purposes.