In the process of reviewing and closing deals, GPs and LPs need to collect information about investment opportunities as well as manage due diligence processes, conduct risk assessments and more. The right software will assist dealmakers in streamlining their workflows to improve accuracy and also save time.
Many private equity firms use various single-use tools to manage their deals, including spreadsheets, word processors note-taking and to-do applications, and Blackbook systems. While using multiple tools simultaneously may seem appealing, it is a waste of time and can cause confusion in data. Dealmakers also run into risks when using siloed data from third-party sources, as they have no guarantee that the data has been vetted by only one vendor. Small-scale vendors may also vanish without notice, which forces dealmakers to reconsider their strategy.
Dealmakers require a platform that is simple to use and that can integrate their data in one place. Utilizing boardroomonline.net/how-to-share-responsibilities-between-the-board-and-the-staff/ a complete CRM that includes API integration for the most well-known collaboration tools — and an efficient database that can manage and store more niche tools — can allow dealmakers to cut down on time, avoid losing data and ensure that all their communications are stored.
The best M&A software can also assist with the complexities of deal structuring and post-merger integration. An automated escrow service for instance could simplify M&A by creating and maintaining transaction specific documents in a central place. A comprehensive M&A platform on the other hand can boost due diligence by providing difficult-to-find details about a company and provide information about the potential for growth and transaction readiness.