One of the more useful consequences of working across several different industries is that you develop a comparative eye. You start to notice which parts of a due diligence process are genuinely specific to the asset class, and which parts are universal disciplines that simply wear different clothes depending on the context.
Fine art: it's all about provenance
In fine art brokerage, due diligence is almost entirely about provenance and authenticity. Where has this work been? Who has owned it? What documentation exists and where are the gaps? The gaps matter as much as the record, because a gap in provenance can mean many things — some innocuous, some not. The skill is in knowing the difference, and in knowing when to bring in specialist verification rather than relying on your own assessment.
Film finance: managing the range of outcomes
In film finance, the process is quite different in form but similar in spirit. You are evaluating a package: script, director, cast attachments, distributor interest, budget structure, the credibility of the production team. Film is inherently speculative. The due diligence discipline is really about managing the range of outcomes rather than eliminating uncertainty.
"The purpose of due diligence is not to confirm what you already believe but to find the thing that challenges it."
Business advisory: people and motivation
In business advisory work through Eclipse Management, due diligence takes on a third character. Here it tends to be about people and motivation as much as numbers. A business can look compelling on paper and still be a poor engagement if the founding team's objectives are misaligned, if the operational reality does not match the presentation, or if there is a cultural dynamic that will make execution difficult. These things do not always appear in a data room. You find them in conversation, over time, by asking questions that are slightly oblique to the stated agenda.
I have found, over many transactions across these different fields, that the deals I regret are almost always ones where I moved too quickly, where I trusted a surface read when a deeper look was available. The deals I am proud of tend to share a common characteristic: I took the time to find the uncomfortable question and sat with the answer before proceeding.
This article is intended for general informational purposes only and does not constitute financial advice.