One controversial post, regardless of intent or accuracy, can circle the globe in an instant, and profoundly affect the business and its leadership. The sheer volume of social media posts on countless topics and platforms makes analysing that sphere in a due diligence context a daunting prospect. However, sophisticated social media analytics tools allow for targeted research; information can be efficiently gathered across multiple social media platforms to identify and measure what people are saying about a company or its management, who is saying it, and how it resonates. Robust due diligence in an M&A transaction should encompass a two-pronged approach to social media that focuses on what is being said about a business entity and its management, as well what the business and management are posting themselves. Understanding the target company from the public’s point of view Tools allow us to conduct “topic queries”. Those queries can be as simple as the name of the target company for any mentions of the entity or can include key words that allow the analyst to zoom in on commentary relating to a particular issue using terms such as “mismanagement” or “scam” or “accounting scandal”. The output includes graphics (see sample below), that reveal the total volume of the conversation over a period of time and on what platforms the conversation is happening (e.g., Twitter or Reddit). “One controversial post, regardless of intent or accuracy, can circle the globe in an instant, and profoundly affect the business and its leadership.” Finance Monthly. Business & Economy 45
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