GPs and LPs need to gather information on investment prospects, manage due-diligence processes, conduct risk assessment and more to assess and conclude deals. Utilizing the right software platforms will help dealmakers streamline their workflows, increase accuracy and speed.
Many private equity firms rely on various single-use tools to manage their deals. These include spreadsheets, word processors, note-taking apps, to-do lists, and Blackbook systems. While juggling multiple tools at the same time may seem like a good idea, it can waste time and can cause data confusion. Dealmakers also run into risks when using siloed data from third-party sources, as there is no guarantee that the data has been scrutinized by one vendor. Small vendors may also disappear at any time, leaving dealmakers with the need to change their strategies for making decisions.
Dealmakers require a platform that is simple to use and can consolidate their data into one place. Dealmakers can save time and avoid losing data with a CRM that integrates APIs for the most popular collaboration software. They can also make use of a database to store and consolidate niche tools.
The best M&A tool can also help with the complexity of deal structuring and integration after mergers. An automated escrow service for instance, can simplify the M&A by storing and creating view it documents specific to transactions in a central place. A extensive M&A platform is on the other hand can boost due diligence by providing difficult-to-find information about a company and offer insights into the potential for growth and transaction readiness.
