0 comments on “Are Your Sponsor Relationships Growing Stale?”

Are Your Sponsor Relationships Growing Stale?

In the current competitive climate of the private capital markets, it’s easy to understand how and why an investment banker could be complacent: the universe of buyers is so large, and so diverse. Even small add-on deals are getting attention from sophisticated buyers with long-term roll-up plans. While the “if you build it, they will come” strategy works for many, it’s far from a best-in-class practice.

Sponsor relationships require attention and care – especially those with the buying power that sellers expect to receive in exchange for the banker’s fee or retainer. Neglecting those relationships in a “seller’s market” is not only foolish, but costly.

In this article, we review four ways for investment bankers to perform a “sponsor relationship health” self-assessment of sorts that is sure to kick-start business development efforts as we head into the busy season.

Who do we really care about?

It’s critical that you and your team have opinions about which sponsors you want to cover and how often. While having a broad base of sponsors to choose from is valuable, it’s also important to assess which of the high-powered buyers you’ve reached out to in the past two years (and will expect more deals from you), and who else besides the usual characters could become valuable contacts in the years to come.

Sponsor Coverage.png
One of the most popular dashboards in DealCloud, Sponsor Coverage views let you home in on who you really care about.

For example, if your firm is pursuing a industry-based business development strategy for finding sellers to represent, and as such is attending many industry-specific conferences, a best practice would be to target those sponsors who will also be in attendance.

Having categorization systems for these high-powered sponsors is an easy, effective way to streamline your teams relationship-building efforts. This categorization/tiering system will help dictate how often sponsors should receive general communications from the firm, and which deals they should receive.

How long has it been?

One such tool that investment banks love to leverage for relationship-building is the “Days Since Last Activity” filter. This function, found conveniently within a CRM platform, makes it easy to look up how long it’s been since you, or someone on your team, has spoken with certain key contacts or organizations.

When leveraging this tool, we always suggest doing your “future self” favors: if there’s a relationship that needs development, set triggers within your CRM system to remind you to reach back out. For investment bankers, we suggest tailoring the cadence of outreach based on buyer type. For example, large and hungry private equity firms likely don’t mind getting “check-in” calls from bankers once a month. Corporate development professionals, however, may be more receptive to a well-timed, curated email.

Frequency of contact.PNG
With DealCloud, easily set the parameters for Sponsor follow up.

No matter how long it has been since your last conversation, make sure to log and look up notes about what was discussed, so it can be referenced during the next meeting. This will help your team pick up the relationship right where it left off.

Do we know their buying power?

Another way to identify and strengthen relationships with high-value groups is to track their buying power explicitly within your CRM. We’ve seen many investment banking firms diligently track data like fundraising activity, volume of closed transactions and bids in order to assign a “buying power” score for the sponsors that they cover.

Having a sense for buying power makes for endless relationship-building (or rekindling if it’s been a long time since the last discussion) and business development opportunities: If they’ve just closed a fund, put out a call to hear about their strike zone. If their portfolio company just closed three add-ons, be sure to discuss the exit/sale timeline in your next meeting. If they submitted a particularly high bid on a deal of yours, have them detail what made them so excited about the transaction.

Carlyle Group SPS.png
Leverage the data of Sutton Place Strategies in DealCloud for a full sense of a Sponsor’s buying power.

This type of transparency will help your team execute on its business development efforts more quickly, and with more confidence. It will also make for stronger, longer-lasting relationships.

Who are we missing?

Total sponsor coverage is something that all firms pursue, but is also extremely difficult to obtain. That’s why it’s so important to regularly evaluate who is missing from your stable of sponsors, and what pitfalls exist in your processes that are prohibiting you from this goal. If you do have identified inefficiencies that you’d like to work on, you don’t have to go it alone.

We’ve helped countless investment banks of all sizes optimize or re-vamp their sponsor coverage model and strategy – talk to us to learn more.

0 comments on “Credibility: Where Reputation Meets Deal Origination”

Credibility: Where Reputation Meets Deal Origination

In a recent interview with Mergers & Acquisitions, Eric Petersen of Abacus Finance said: “The private equity industry today is extremely competitive. There’s been a lot of capital raised, and a lot of funds, which is driving a very frothy market and making it very difficult for firms to differentiate themselves.”

0 comments on “Intapp acquires DealCloud”

Intapp acquires DealCloud


 Acquisition Expands Intapp’s Industry Cloud for the Professional and Financial Services Markets

PALO ALTO, CA — August 14, 2018 Intapp, a leading provider of industry solutions for the $2 trillion global professional services industry, today announced the acquisition of DealCloud, which specializes in CRM and deal management for investment banking and private equity firms. DealCloud’s previous investors include FINTOP Capital, Hamilton Lane (NASDAQ:HLNE) and Cultivation Capital.

This acquisition continues Intapp’s mission to create a vertical industry platform for the professional services sector. By combining innovative Silicon Valley technology with deep sector expertise, Intapp’s platform solves the specialized requirements of the professional and financial services industries in a way that has never been available from traditional horizontal technology providers.

The Intapp Professional Services Platform is purpose-built to address the unique needs of professional services and capital markets firms across the client lifecycle. The solutions are designed to help firms win and grow clients, manage risk and compliance, and deliver services and outcomes more efficiently and profitably.

DealCloud will strengthen Intapp’s financial services presence. Together, Intapp and DealCloud’s offerings will provide a comprehensive, cloud-based client life cycle platform that will manage all phases of client relationships throughout the professional and financial services transaction ecosystem.

“We are very pleased to join with the DealCloud team to better support an increasingly integrated and collaborative professional and financial services industry,” said John Hall, CEO of Intapp.  “There are a lot of moving parts when private equity firms, investment banks, lawyers, accountants, consultants and other advisory professionals work together to manage client transactions, projects and outcomes successfully. Bringing DealCloud’s business development and CRM capabilities under the Intapp umbrella enhances our ability to meet the specific needs of professionals in this unique ecosystem.”

“Today’s leading capital markets firms are supported by a global network of legal, accounting and consulting firms that provide essential professional services to enable deal success. Firms in these industries share the same go-to-market and deal execution process with clients,” said Rick Kushel, CEO of DealCloud. “Working together with Intapp – and being able to leverage its market position and much larger balance sheet – gives us the critical mass we need to see our vision become reality across the entire industry.”

“Intapp’s position as the market leader for the professional services industry, coupled with the work we’ve done at DealCloud in financial services, creates a truly one-of-a-kind company with the ability to transform how deal-making is done,” added Ben Harrison, DealCloud’s co-founder. “Our shared vision convinced us that Intapp is the best home for the DealCloud team and technology.”

Client-Based Industries Have Been Underserved by Horizontal Technologies

According to Kushel, it’s clear that traditional CRMs based on the classic sales department pipeline model haven’t worked in professional services firms. Partners in firms don’t use them because these CRMs don’t match the way they actually develop client relationships.

“DealCloud has created the most innovative, partner-friendly business development platform in the marketplace,” said Dan Tacone, Intapp’s president. “They understand the critical role of professional networking relationships, and the requirement to help partners manage client and individual matters, engagements and projects across a fluid team of deal professionals. When we pair DealCloud with Intapp’s unmatched capabilities in client acceptance, compliance and delivery, we are very excited about the value this combination delivers to our clients.”

About DealCloud

DealCloud is a pioneer in M&A software. The company was formed in 2010 by a team of former deal professionals with deep knowledge of the private capital markets, and has been backed by FINTOP Capital, Cultivation Capital and Hamilton Lane (NASDAQ:HLNE). DealCloud is now a global leader in providing deal management, workflow and technology solutions to capital markets firms, including private equity and growth capital firms, sell-side banks, publicly traded companies and debt capital investors. For more information, please visit www.dealcloud.com

About Intapp

Intapp provides software and services that enable professional services and capital markets firms to thrive in an increasingly competitive marketplace, enhancing their ability to win more business, operate efficiently, manage risk and drive project and client success. Over 1,100 customers globally, including 96 of the Global 100 law firms, five of the top eight global accounting firms, and more than 400 capital markets and advisory firms, rely on us. We offer a professional services platform – purpose-built for this industry – spanning the entire client life cycle, with solutions for client development, business acceptance and client delivery. Intapp is backed by Temasek and Great Hill Partners. For more information, visit www.intapp.com

0 comments on “DealCloud Differentiator – Advanced Search”

DealCloud Differentiator – Advanced Search

This should sound like a familiar scenario: you remember a colleague talking about a conference she attended months ago with companies in the Consumer Retail space. Since you are focused on Consumer Retail acquisitions at your firm, it is your responsibility to know all the companies in the vertical, even if you did not directly attend each conference. What do you do next?

If you are using a generic CRM, this means racking your brain to find the exact name of the conference, or bugging your colleague until she’s able to rattle off a few execs she remembered meeting so you can search those conferences and contacts. If you do not use a CRM, you will likely have to comb through hundreds of emails in Outlook, scrub through myriad folders in your network drive, or take the easy way out and pretend that conference never took place.

However if your firm leveraged DealCloud, our Advanced Search functionality would solve this issue for you instantaneously.

Type Ahead Search
DealCloud offers type-ahead search on every screen, to easily find what you need.

It’s as easy as clicking on the search bar in the center of every page, and starting to type. Upon entering “Retail” we now see a shortlist of all the results the system has automatically generated for you – sectors, companies, or conferences related to retail. Now you can simply click “Outdoor Retailer Summer Show 2018”, which was the conference your colleague attended a few months ago, to easily see all the companies present.

Advanced Search in DealCloud enables you to search across the entire database in a matter of seconds, saving you time and effort in finding the exact piece of information you need. This includes reading through subjects and bodies of emails, business descriptions of companies, or even the contents of any document or attachment.

Through Optical Character Recognition (OCR), our advanced search function reads through the entire site’s data to return what you need. Additionally, while many systems require an exact keyword match, our search bar employs contains logic. No need to remember specific names or companies. Simply begin typing “Retail” to return any record or document that contains the keyword.

Another important feature of Advanced Search is to organize results when querying across the full database. We initially only see the most popular entries in the Quick Search pane, however if we want to see more, scroll down and click “View all results”.

Search Detail.png
DealCloud organizes search results for you and gives your the ability to expand search results as well.

We now have access to all the results for “Retail” across the database. Rather than see all 2,100 records, you can specify which lists you are specifically interested in – in this case Emails, Capital Providers, or Notes that have any mention of “Retail” in the title, note body, or tag. Additionally, through the flexible configuration engine you can determine which default record types appear in the quick search results pane versus the full results page.

Advanced Search
Advanced search allows you to narrow down your results to hone in on what’s important to you.

Searching is a critical piece of any software, but it becomes even more meaningful when deal professionals are managing numerous connections, conversations, and processes. You need the capability to conduct advanced searches to not only return what you are looking for, but save you time and effort in the process.

0 comments on “Top Three Tips for Increasing Transparency Across Your Firm”

Top Three Tips for Increasing Transparency Across Your Firm

One major challenge facing investment banking and private equity firms today is transparency (or lack thereof). We’re constantly hearing that information share and cross-team coordination remain a huge hurdle for these firms to overcome, and that there’s few guide resources available for righting the course.

0 comments on “DealCloud Q3 2018 Insights”

DealCloud Q3 2018 Insights

DealCloud News Header
To subscribe to the DealCloud newsletter click here.

Client Announcements 

Route 2 Capital Partners, a South Carolina based private investment firm selects Route 2_logoDealCloud. R2CP recently announced the initial closing of Route 2 Capital Partners SBIC, L.P. and is actively seeking mezzanine and equity capital investments across the southern U.S.

Investment banking firm Cassel Salpeter & Co. has selected DealCloud’s technology Cassel Salpeter & Co. logo.jpgsolutions to support its work in the areas of mergers and acquisitions, capital raising, and valuations. “We attribute our success in great measure to equipping our team with the industry’s best resources,” President Scott Salpeter says.

Edgemont Capital Partners, a leading healthcare investment banking firm providing Edgemont blog logo.jpgmergers and acquisition advisory services to healthcare services, life sciences services and healthcare (HCIT) information technology companies in the middle market is leveraging DealCloud.