GPs and LPs need to collect information about investments, manage due-diligence processes, conduct risk assessments and more in order to assess and conclude deals. Utilizing the right software platforms can aid dealmakers in streamlining their workflows, improve accuracy and speed.
A lot of private equity firms utilize multiple tools for managing their deals. These include spreadsheets, word processing notes-taking, to-do and note-taking applications and Blackbook. While juggling these different tools may be convenient in the moment, they consume valuable time and often result in data confusion. Dealmakers also face risk when they use siloed data sources from third parties as there is no guarantee that the information has been vetted and verified by one vendor. Additionally, small companies can disappear without notice, leaving dealmakers to rework their decision-making strategies.
It could be an urgent email from a prospect or an unexpected request for more details from a client, a dealmaker needs an easy-to use platform that allows them to organize and access their information all in one location. Dealmakers can cut down on time and avoid losing data by using a CRM that integrates APIs for the most popular collaboration software. They can also make use of a database to keep track of and consolidate tools for niche use.
The ideal M&A tool can also help with the complexity of deal structuring, as well as integration after mergers. For instance an automated escrow system can simplify the M&A process by questions before the board meeting creating and maintaining transaction-specific documents in an accessible location. In addition, a comprehensive M&A platform can enhance due diligence capabilities by revealing difficult-to-find information about the company, as well as provide insights into the acquisition’s potential for growth and readiness.