When evaluating and closing deals, GPs and LPs require information about investment prospects, manage due diligence processes, conduct risk assessments and much more. The right software platform will assist dealmakers in streamlining their workflows to improve accuracy and cut down on time.
Many private equity firms utilize different tools to manage their deals. These include spreadsheets, word processing, to-do and note-taking apps as well as Blackbook. While juggling these tools may seem convenient at the moment, they waste time and can result in data confusion. Dealmakers also face risks when using siloed third-party data sources, as they are no assurance that the data is vetted by only one vendor. Small-scale vendors may also vanish without notice, causing dealmakers to rethink their decision-making strategy.
It could be an urgent email from a potential client or an unexpected request for more information from a client, a dealmaker requires an easy-to use platform that allows them to store and access their data in one place. Dealmakers can save time and avoid data loss with a CRM that integrates APIs for the most popular collaboration software. They can also use databases to store and consolidate niche tools.
The appropriate M&A software can also handle the complexities of deal structuring and post-merger integration. For example an automated escrow solution will simplify the M&A process by creating and maintaining transaction-specific documents in an accessible location. A extensive M&A platform however can help improve due diligence by surfacing difficult-to-find information about a company, and offer insights into its growth potential and transaction-readiness.