When conducting an evaluation and closing deals GPs and LPs need to collect information about investment prospects and manage due diligence processes and conduct risk assessments, and more. The right software platform will assist dealmakers in streamlining their workflows improving accuracy, and reduce time.
Many private equity firms utilize various tools to manage their deals. These include spreadsheets, word processing as well as note-taking and to-do applications as well as Blackbook. Although juggling several tools at once might seem convenient, it wastes time and can cause confusion about data. Dealmakers also face risk when they use siloed, third-party data sources, since they have no assurance that the data has been scrutinized by a single vendor. Small vendors can also disappear without notice, requiring dealmakers to rethink their decision-making strategy.
Dealmakers require a platform that is easy to use and can help consolidate their data into one location. Dealmakers can cut down on time and avoid data loss by using a CRM that integrates APIs of the most popular collaboration software. They can also use databases to organize and store niche tools.
The right M&A tool can also assist with the complexity of deal structuring, as well as integration after mergers. An automated escrow service, for example could simplify M&A by establishing and keeping transaction specific documents in a central place. A extensive M&A platform on the other hand can help improve due diligence by surfacing difficult-to find information about a business and provide information about the potential for growth and transaction readiness.