Frequently asked questions
When should we engage FirstSounding?
As soon as the LOI is signed and you have data room access. The earlier the report lands, the more of exclusivity you can spend acting on it.
Is this a quality of earnings report?
No. It is an independent pre-read that precedes the QoE and informs it. Lenders will still require a signed QoE from an accounting firm. Our work helps that firm start in the right place.
How do you get into the data room?
You request a named advisor seat for us with download rights, as you would for any advisor. We provide the wording. If the seller restricts the seat, we work from documents your team exports to us.
Is three business days realistic for a large data room?
For most lower middle market and mid-market data rooms, yes. For very large rooms, we agree on the timeline and the order of priority during the scoping call.
How do you prevent AI errors?
Our models are fine-tuned for due diligence, and every finding they produce is cited to the source. A qualified reviewer approves each finding before delivery, and findings that do not withstand review are removed. You can open the cited page for any finding and check it yourself.
Does the analysis depend on public filings?
No. Many targets have no prior institutional rounds and no public filings. The analysis works from the data room and from market data. Court, lien, and regulatory records are checked where they exist, as a supplement.
Do you assess growth and exit, or only risk?
Both. Every engagement includes a growth-potential analysis and an exit analysis alongside the red-flag report. See growth potential and exit analysis.
Who reviews the findings?
A reviewer with transaction-services experience reviews every report. Forensic, regulatory, and contract specialists are brought in when a finding needs them. All reviewers are screened for conflicts.
Do you give legal or investment advice?
No. We report facts, risks, and their estimated impact. Legal questions go to your counsel, and the decision is yours.
Is our data used to train AI models?
No. Our models run on our own infrastructure, and no client or target data is ever sent to a third-party AI provider. Client and target data are never used to train models and never shared across clients. Data room documents are deleted at the end of the engagement; the final report and its review record (reviewer sign-offs and engagement correspondence) are kept for the period set in the engagement letter.
Which sectors do you cover?
Core checks apply to every deal. We have sector modules for consumer and retail brands, healthcare and healthtech, and software and tech-enabled services, and we agree on sector-specific tests for other industries during scoping.
What size of deal is this for?
The process is built for lower middle market and mid-market deals, where advisory budgets are tighter and data rooms are rarely read in full. Larger deals are considered case by case.
How much does it cost?
A fixed fee per deal, quoted after the scoping call. See engagement and fees.
What if the report finds nothing?
A report without actionable findings is itself a result: it confirms, with citations, the parts of the thesis the data room supports.
Can we share the report with co-investors or lenders?
Yes, subject to the terms in the engagement letter. If a lender or insurer needs to formally rely on the report, a reliance letter is available as an add-on.
Discuss a transaction under LOI.
Share the sector, the deal size, and the end of exclusivity. We respond within one business day with an assessment of fit and the proposed scope of the report.