When evaluating and closing deals, GPs and LPs need to collect information about investment prospects as well as manage due diligence processes and conduct risk assessments, and more. Using the right software platform will help dealmakers streamline their workflows, increase efficiency and reduce time.
Many private equity firms utilize numerous tools to manage their deals. These include word processing, spreadsheets, to-do and note-taking apps as well as Blackbook. While juggling multiple tools simultaneously may appear to boardroomonline.net/how-to-share-responsibilities-between-the-board-and-the-staff/ be a good idea, it takes up precious time and creates confusion in data. Dealmakers also face risk when using siloed third-party data sources, as they are no guarantee that the information has been vetted by only one vendor. Small vendors can also disappear without notice, which forces dealmakers to rethink their decision-making strategy.
When it’s a urgent email from a potential client or an unexpected request for more information from a client the dealmaker needs an easy-to-use platform that can manage and access their data in one place. Dealmakers can cut down on time and avoid losing data by utilizing a CRM which integrates APIs of the most popular collaboration software. They can also use databases to store and consolidate niche tools.
The appropriate M&A tool can also help in the process of deal structuring and integration after mergers. For instance an automated escrow solution can make it easier to manage the M&A process by generating and maintaining transaction-specific documents easily accessible. A comprehensive M&A platform however, can improve due diligence by surfacing difficult-to find information about a company, and provide insight into its potential for growth and transaction-readiness.