In the course of conducting an evaluation and closing deals GPs and LPs need to collect information about investment opportunities, manage due diligence processes, conduct risk assessments and more. The right software platforms can help dealmakers streamline workflows to improve accuracy and reduce time.
Many private equity firms use numerous tools to manage their deals. These include word processing, spreadsheets applications, note-taking and to-do apps, and Blackbook. While using these various tools might seem like a good idea in the moment, they eat up time and can cause data confusion. Dealmakers are also at risk when they use siloed data sources from third parties, as there is no guarantee that data has been verified and vetted by only one vendor. Additionally, small vendors can disappear without notice, forcing dealmakers to rework their strategies for making decisions.
Dealmakers need an application that is simple to use and can help consolidate their data into one location. Utilizing a complete CRM that includes API integration for the most widely used collaboration tools — and an efficient database that can be used to store and consolidate other specific tools — can enable dealmakers to https://boardroomonline.ne save time, prevent losing data and ensure that all their communications are stored.
The ideal M&A tool can also help in the process of deal structuring and integration following mergers. For instance an automated escrow solution can streamline the M&A process by generating and storing transaction-specific documents in an accessible location. Meanwhile, a comprehensive M&A platform can enhance due diligence capabilities by surfacing hard-to-find company information as well as providing insights into the acquisition’s growth potential and transaction readiness.