0 comments on “2 Buy-and-Build Trends to Watch, and How to Track Each in Your CRM”

2 Buy-and-Build Trends to Watch, and How to Track Each in Your CRM

For the 10th year in a row, Bain & Company has released its Private Equity Report, which serves as a “state of the state” for many capital markets participants of all shapes and sizes. While many would argue that the private equity landscape has remained largely the same (competitive, fragmented, etc.) over the past decade, this particular report leverages Preqin data to analyze the minutiae of the industry, down to the tiniest strategies firms are deploying in an effort to get ahead.

This year, instead of just reading the report, we’re working with our clients to find ways to make these insights more actionable. In this article, we review two of the most poignant market trends discussed in the report, and provide best practices for tracking those trends and data points in your CRM.

“Sectors with Room to Run”

It’s no surprise that “buy-and-build” strategies remained popular amongst private equity players in 2018. But that doesn’t mean that it’s gotten any easier to derive value from these transactions. According to the Bain & Company report, “Sector dynamics can have a huge impact on the success or failure of a given buy-and-build strategy. Value creation depends on a steady cadence of acquisitions, which means a sector has to provide an ample supply of targets and a stable environment in which to pursue them.”

In light of this observed trend, sponsors should create dashboards that enable monitoring of each sector in which a roll-up strategy could be successful, as well as all of the companies that could be included as acquisition targets. Firms can build these dashboards in a few ways: by configuring your proprietary data in a way that tags and categorizes private companies consistently with your add-on interests in mind; by leveraging third-party data providers such as PrivCo which allow you to identify and target U.S. private companies that meet your add-on criteria; or by fusing both of the aforementioned tactics together (this is our best recommendation).

The Bain report cites the number of veterinary businesses in the U.S. as an example of an industry to watch because there’s “plenty of runway for future consolidators.” Using that same niche industry as an example, we also recommend indexing closed deals (as seen to the right), which will help your firm track industry-specific consolidation trends and competitors.

“Merger integration: stepping up to the challenge”

Bain’s research also found that “broken deals tend to fail because firms stumble over merger integration,” and that “successful merger integration begins with strong due diligence.” In light of this observed trend, we recommend that firms create staffing dashboards. By tracking each team member’s ongoing workload (i.e., the deals that they are working on, and what stage each is in, as seen below), the firm’s leadership team will be better positioned to assess which individuals have the bandwidth to participate in the diligence process, and which do not. In doing this, due diligence processes will get the attention and care they so desperately require, and the merger integration will be set up to succeed.

The firm can set rules for over- and under-staffing (e.g., managing 10 or more deals is too much, and three or fewer deals is too little). From there, we recommend setting notifications for when those thresholds are crossed. These systems are easy to set up, and can help to ensure that team members who are leading due diligence processes aren’t being distracted by too many other responsibilities. More broadly, these measures can help facilitate better resource allocation.  

From cost estimates and revenue synergies, to crafting an integration thesis, the Bain report provides excellent tips on key questions to ask during diligence. But if your team isn’t prepared to dedicate meaningful time and resources to those questions, they’ll surely never get answered, and the investment will suffer as a result.

Conclusion

Gone are the days of not tracking these capital market trends in your CRM. It’s time for firms to turn these insights into institutional knowledge, and it seems like the folks at Bain & Company agree: “At a time when PE firms face soaring asset prices and heavy competition for deals, advanced analytics can help them derive the kinds of proprietary insights that give them an essential edge against rivals.”

If you’d like to learn more about configuring your instance of DealCloud to better track these trends, let us know, and we would be happy to share our tips and best practices.

0 comments on “Argonaut Private Equity Selects DealCloud”

Argonaut Private Equity Selects DealCloud

Argonaut Private Equity, a Tulsa, OK-based private equity firm committed to creating opportunities, investing in transformational growth, and delivering valued solutions, has selected DealCloud.

With over 100 investments, Argonaut has fostered an ongoing network of global relationships to discover and partner with best-in-class management teams, applying its experience and strengths to deliver solutions, generate value, and propel growth. Argonaut is currently investing through Argonaut Private Equity Fund IV LP which was raised in 2018.

“Argonaut has certainly been busy over the years, with over $3 billion of capital deployed in direct investments since 2002,” says Ben Harrison, DealCloud’s Chief Revenue Officer. “We’re proud to provide such a power-house firm with a unified deal and relationship management platform that will help sustain and propel their growth in the years to come.”

About Argonaut Private Equity

Argonaut understands the unique needs of individual businesses that operate in the central region of the United States and other underserved markets. Argonaut partners with companies to develop a strategy for accelerating growth and enhancing operations. Leveraging the collective strength of its historical investment experience, industry advisors, current portfolio companies, and affiliates, Argonaut looks to share resources, best practices, and key relationships between investments to create synergistic opportunities across the following sectors: energy services, manufacturing, and industrials. For more information, visit: www.argonautpe.com.

About DealCloud

DealCloud, an Intapp company, provides a single-source deal, relationship, and fund management platform to enable over 600 clients to power their deal-making process from strategy to origination to execution. We offer fully configurable solutions purpose-built for the complex relationships and structures of private equity and growth capital firms, investment banks, private and publicly traded companies, debt capital providers, and other investors. For more information, visit www.dealcloud.com.

0 comments on “The Top 3 Metrics Sponsors Aren’t Discussing in Monday Morning Meetings, but Should”

The Top 3 Metrics Sponsors Aren’t Discussing in Monday Morning Meetings, but Should

2019 is off to a strong start for many capital markets firms, and U.S. GDP growth predictions show no signs of slowing. In an effort to take advantage of the strong economic climate, many private equity firms, credit firms, and corporate development departments are thinking more critically about their data and reporting capabilities.

Each day, hundreds of firms consult with DealCloud on how to be more competitive in this crowded market, and most proceed with configuring their deal and relationship management capabilities to better suit the growing needs of their firm. Most firms we speak with are trying to make better use of third-party data alongside their proprietary intelligence. In this article, we explore three key areas that, when supported by best-in-class third-party data, can transform ordinary gatherings such as Monday morning meetings into high-powered, insightful strategic sessions that can help move the needle for your firm. 

1. Intermediary movement

With thousands of investment banks and M&A advisors in the U.S. and even more worldwide, it’s easy to understand why most buyers and lenders have a hard time keeping track of who’s who. But just because there’s a lot of bankers doesn’t mean maintaining those relationships is any less important. By using LinkedIn, email marketing, and the third-party data found in your CRM, it’s easy to keep track of when investment bankers, brokers, and advisors switch from one firm to another.

If you learn that a banker has moved to a new firm, or that the firm has dissolved altogether (see below) it’s important that you capture his/her new contact information and focus (based on industry, deal size or type, geography, etc.). Private equity professionals, lenders, and corporate development teams should regularly review these banker movements at Monday morning meetings, as well as keep that data up-to-date in weekly reports. In doing so, teams can better identify potential weaknesses, observe hiring trends, and build new coverage models.

2. Spin-off firms

Similar to tracking the departures of bankers from one firm and their arrival somewhere new, sponsors and lenders should keep a keen eye on the new firms being created and the deals they’re bringing to the market. The trend is clear: most intermediaries are doing just a few deals a year. In fact, according to a recent report from Sutton Place Strategies, over 70% of intermediaries closed three or fewer deals in 2018, making it even harder for sponsors to track and maintain relationships with these firms.

The value of tracking when new firms are formed is that sponsors and lenders can use the move as conversation starter, and it can be used to re-orient the relationship/re-establish mutual interest. Perhaps most importantly, it keeps your firm top-of-mind. And since many of these spin-off firms include professionals from the top, most active financial advisory firms, it’s important that a new coverage model be built so that your firm isn’t passed over for deals.

3. Your share of relevant deals

It’s always a smart and strategic idea to review the deals that are coming into the pipeline, and assess their relevancy to your investment thesis. But what many firms are forgetting to do is review the deals that are relevant, but they didn’t see. We encourage your teams to take a critical eye and ask yourselves: “What are our top intermediary relationships closing?”

By looking at the total universe of deals that your key intermediaries are closing, your firm can better assess where it missed out. Additionally, by looking at the deals it didn’t see based on geography, your firm can make an action plan to improve coverage and relationships in those markets.

We recognize that many firms have a tried-and-true format for their Monday morning meetings, but we also know that keeping a pulse on market movements and trends can be the difference between seeing quality deals and losing out on being part of the deal process. That’s why DealCloud has teamed up with Sutton Place Strategies (SPS), an award-winning provider of actionable data for PE and M&A professionals, to make this type of data not only more readily available in one, unified system, but more actionable.

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0 comments on “PrivCo’s Verified U.S. Private Company Intelligence to be Integrated into DealCloud DataCortex”

PrivCo’s Verified U.S. Private Company Intelligence to be Integrated into DealCloud DataCortex

The integration of PrivCo’s industry-leading intelligence into DealCloud’s DataCortex solution will allow clients to accelerate research and build business development pipelines more efficiently.

New York, NY | March 4, 2019: DealCloud, a global technology leader for CRM and deal management in the capital markets, and PrivCo, the go-to-source for data intelligence on the U.S. private markets, announced today that PrivCo’s data will be integrated with DealCloud’s DataCortex product.

“In order to compete in this crowded market, capital markets professionals need verifiable financial and performance, insights for U.S. private companies at their fingertips. Unfortunately, those insights aren’t always easy to obtain. That’s why we’re excited to team up with PrivCo,” says Amit Lalwani, SVP of Global Business Development at DealCloud. “By infusing our best-in-class deal and relationship management platform with their market-leading insights, our clients will be able to streamline and expedite their research and business development efforts.”

Through the integration – slated for official release in the summer of 2019 – clients of both DealCloud and PrivCo can leverage real-time data and insights such as growth rates, valuations, related companies, comparables, deals, investment/ownership history and structure, employee count, and revenues all in one, centralized platform that is accessible from any desktop or mobile device. Prior to the complete integration, clients of both DealCloud and PrivCo can benefit from this partnership via bulk Excel upload functions. Current DealCloud clients that choose to adopt PrivCo prior to the full integration will receive exclusive pricing. 

“Savvy investors will see real value and a clear ROI from our U.S. private market insights,” said Basil Hamadeh, PrivCo CEO. “They will be able to quickly evaluate whether a company is a good candidate for investment and also get a better picture of the industry it operates in. By partnering with DealCloud, investors can more easily leverage PrivCo’s unique intelligence, augment their due diligence efforts, and source new targets.”

Over 600 principal investing firms, investment banks, and operating companies rely on DealCloud’s solutions for storage of proprietary data, deal sourcing, origination and deal management.


About PrivCo
PrivCo is the go-to-source for valuable insights into the financial health, market position and trajectory of U.S. private companies, including private companies with no outside funding—a universe that comprises the majority of U.S. companies but that is not covered by deal-focused resources. Discover new targets or augment your due diligence with PrivCo’s industry-leading U.S. private company intelligence. Learn more at www.privco.com.

About DealCloud

DealCloud, an Intapp company, provides a single-source deal, relationship, and fund management platform to enable over 600 clients to power their deal-making process from strategy to origination to execution. We offer fully configurable solutions purpose-built for the complex relationships and structures of private equity and growth capital firms, investment banks, private and publicly traded companies, debt capital providers, and other investors. For more information, visit www.dealcloud.com.

0 comments on “Park Square Capital Deploys DealCloud”

Park Square Capital Deploys DealCloud

Park Square Capital, one of the world’s leading private debt firms that provides flexible financing solutions to high-quality and stable companies across Europe and the US, has deployed DealCloud. Park Square has invested more than $11 billion in senior and subordinated debt across different market cycles and today manages over $9 billion of capital.

Park Square has a team of 20 highly experienced senior professionals, each with an average of 18 years’ experience of credit investing, and approximately 90 staff in total. Park Square has offices in London, New York, Paris, and Luxembourg.

“DealCloud’s understanding of the deal process and CRM needs of investment teams is unique,” says Andrew Haywood, CFO & Partner at Park Square. “Park Square has deep relationships across the market and the ease of day-to-day use and out-of-the-box reporting has significantly improved the way we manage these relationships.”

“Park Square has a great track record internationally thanks to their disciplined and cycle-tested approach to debt investing,” says Ben Harrison, DealCloud’s Chief Revenue Officer. “We’re proud to support the firm with a suite of technology solutions that will further propel their growth and deepen their long-standing relationships.”

About Park Square Capital
Park Square Capital is one of Europe’s leading independent credit providers, investing in senior debt, subordinated debt and special situations. Park Square focuses on investing in high-quality levered companies backed by leading financial sponsors in Europe and the US. The firm has a selective, long-term and flexible investment approach, aimed at delivering attractive risk-adjusted returns across the market cycle. Park Square currently manages over $9bn of capital on behalf of its investors, which include global public and private pension funds, sovereign wealth funds, insurance companies and asset managers. The firm was founded in 2004, and has offices in London, New York, Paris and Luxembourg. www.parksquarecapital.com

About DealCloud
DealCloud, an Intapp company, provides a single-source deal, relationship, and fund management platform to enable over 600 clients to power their deal-making process from strategy to origination to execution. We offer fully configurable solutions purpose-built for the complex relationships and structures of private equity and growth capital firms, investment banks, private and publicly traded companies, debt capital providers, and other investors. For more information, visit www.dealcloud.com.

0 comments on “The Forbes M+A Group Deploys DealCloud”

The Forbes M+A Group Deploys DealCloud

The Forbes M+A Group, a Denver, CO-based transaction advisory firm, has deployed DealCloud. The firm serves buyers or sellers in middle-market M&A transactions, and its senior advisors have more than 150 years of combined experience in transactions across a wide variety of industries, transaction types, sizes, and structures.

“We know that every business is unique, and we value our clients’ distinctiveness. We chose DealCloud to help us better understand all the factors that contribute to our clients success,” says Max Eckstein, Vice President at The Forbes M+A Group. “Through DealCloud we are able to deploy our unique and extensive processes that captures a broad universe of data and efficiently put that to work for our clients benefit.”

“The team at The Forbes M+A Group provides hands-on, senior-level leadership on every transaction and has their finger on the pulse of changing market valuations and consolidation activities,” says Ben Harrison, Chief Revenue Officer at DealCloud. “We’re proud to support their team with the technology solutions they need to deliver the best possible outcomes for their clients.”

About The Forbes M+A Group

The Forbes M+A Group is an award-winning Denver, CO-based mergers and acquisitions advisory firm. The firm serves sellers or buyers in middle-market M&A transactions. It applies meticulous attention to detail in helping business owners develop and execute M&A strategy, acquire companies and partner with investor groups for growth, and maximize value in an eventual exit. Senior advisors at The Forbes M+A Group have more than 150 years of combined experience in transactions across a wide variety of industries. For more information on the Company, please visit: www.forbesma.com or (303)770.6017.

About DealCloud

DealCloud, an Intapp company, provides a single-source deal, relationship, and fund management platform to enable over 600 clients to power their deal-making process from strategy to origination to execution. We offer fully configurable solutions purpose-built for the complex relationships and structures of private equity and growth capital firms, investment banks, private and publicly traded companies, debt capital providers, and other investors. For more information, visit www.dealcloud.com.