GPs and LPs must gather information about investment opportunities, manage due-diligence processes, conduct risk assessments and more to review and close deals. Leveraging the right software platforms can aid dealmakers in streamlining their workflows, increase accuracy and save time.
Many private equity firms employ various tools to manage their deals. These include spreadsheets, word processing applications, note-taking and to-do apps, and Blackbook. While using these various tools may appear convenient in the moment, they waste valuable time and often lead to data confusion. Dealmakers also face risk when they rely on siloed data sources from third-party vendors, as there is no guarantee that information has been verified and vetted by one vendor. Additionally, small companies can disappear without notice, forcing dealmakers to revise their strategies for making decisions.
If it’s an urgent email from a potential client or an unexpected request for more details from a client, a dealmaker needs an easy-to-use platform to consolidate and access their data in one place. Utilizing a complete CRM that includes API integration for the most widely used collaboration tools as well as an efficient database that can be used to store and consolidate other specific tools — can allow dealmakers to cut down on time, avoid data loss and ensure all their communications are protected.
The appropriate M&A software can also support the complexity of deal structuring and post-merger integration. An automated escrow service, for example can help simplify the M&A by establishing and keeping specific documents for transactions in a central place. In addition, a comprehensive M&A platform can boost due diligence capabilities by surfacing difficult-to-find company information as well as providing insights into the target acquisition’s potential for growth and readiness.