Dealmaking Software For Private Equity Firms and LPs

GPs and LPs require information about investment prospects, manage due diligence processes, conduct risk assessment and more to assess and conclude deals. The right software platforms will help dealmakers streamline workflows to improve accuracy and reduce time.

Many private equity firms use multiple single-use tools to manage their deals, such as spreadsheets, word processors note-taking and to-do applications, and Blackbook systems. While juggling these tools might seem like a good idea at time, they can waste time and can result in data mismatch. Dealmakers also run into risks when they use siloed, third-party data sources, as they have no guarantee that the data has been scrutinized by only one vendor. Small-scale vendors may also vanish without notice, causing dealmakers to reconsider their strategy.

When it’s a urgent email from a prospect or an unexpected request for more details from a client, a dealmaker needs an easy-to-use platform that can manage and access their data in one place. Using a full CRM with API integration for the most popular collaboration tools as well as a robust database that can be used to store and consolidate other specific tools — can allow dealmakers to cut down on time, avoid data loss and ensure all their communications are protected.

The best M&A software can also support the complexity of deal structuring and post-merger integration. Automated escrow services, for example could simplify M&A by establishing and keeping transaction specific documents in a central location. A comprehensive M&A platform, on the other hand can enhance due diligence by surfacing difficult-to-find information about a business and provide insights into the potential for growth and transaction readiness.