In last week’s post, SPS analyzed the most active equity investors and sellers, as well as the most active advisors since Memorial Day of 2018. While it continues to be a very busy summer, it is still important to be strategic in your business development and sourcing strategies. Here are three ways to utilize the SPS Portal to maintain your sourcing strategy and keep your pipeline full, even as you diligently work to close the deal in front of you.

Make new friends, but keep the old

Over the four-quarter period from Q3 2017 through Q2 2018, there were 172 new deal sources advising on a deal for the first time. Moreover, nearly 80 of those investment banks advised on a transaction in the first half of 2018. Reviewing the number of new professionals over this twelve-month period, approximately 650 professionals advised on a deal for the first time. This does not necessarily indicate that the investment bank that they represent is new to the M&A ecosystem, simply that this is their first association on a transaction at their respective firm.

Often SPS hears from PE professionals that it is difficult to research and stay on top of new advisors while, at the same time, managing all their existing relationships. The act of identifying new deals sources may sound great in theory, yet SPS does recognize the challenges associated with staying informed of not only who these firms are, but also which firms or professionals are relevant to your strategy. It is a tremendous amount of data to compile and scrutinize. Enter the SPS Portal. The dashboard of the Portal compiles this data on a quarterly basis, thus streamlining the process of connecting you with new deal sources that are relevant to your investment criteria. Future-proof your business by building early relationships with these new sources of deal flow.

Mining for gold

A cultivated and well-maintained pipeline exhumes potential opportunities to grow your fund’s portfolio, as existing pipelines are teeming with broken processes and transactions that have not yet traded. The upside to employing this strategy is that these transactions were previously vetted; thus providing a unique opportunity to transform a historical pipeline into an actionable source for fresh deal flow. There are many reasons that a deal may not trade, yet the time and resources were invested to build advisor and proprietary relationships, and now is the chance to capitalize on those efforts to see which deals are potentially still at large.

Once again, the SPS Portal alleviates the manual, data-crunching process involved in mining for these potential available deals. By cross-referencing an internal pipeline with SPS market data, users can effortlessly determine which deals in their pipeline traded and which deals are still available. Focus your efforts on sourcing and closing deals, not gathering data or running queries.

Remain alert and have a safe day

Over the four-quarter period from Q3 2017 through Q2 2018, there were 172 new deal sources advising on a deal for the first time. Moreover, nearly 80 of those investment banks advised on a transaction in the first half of 2018. Reviewing the number of new professionals over this twelve-month period, approximately 650 professionals advised on a deal for the first time. This does not necessarily indicate that the investment bank that they represent is new to the M&A ecosystem, simply that this is their first association on a transaction at their respective firm.

Examples of SPS Alerts available from the Portal:

  • Newly active deal sources and professionals that closed a deal in your target for the first time
  • Broken deal alerts: Notify you when high-priority deals from your internal pipeline didn’t trade
  • Weekly recap of deals that traded the prior week
  • Flag your key contacts receive alerts when they close a deal in your space

Waiting until the end of the quarter to aggregate this information may not be optimal in our mobile-first lifestyle. Instantaneous access will give you an edge in this competitive market, and enable you to be among the first to call and congratulate a professional and find out what they are currently working on!

Crossing the finish line!

These are three tactics to exploit when using the SPS Portal. Of course, there are many other tools and reports available to help maintain a robust pipeline, even as you hunker down in the deal bunker. As we enter the homestretch of 2018, and with conference season gearing up, these strategies will benefit any deal originator who is looking to capitalize on current market conditions. Do not get overwhelmed by the flurry of activity – be competitive by making new friends, remaining alert, and digging for gold. This market requires deal originators to be creative and use all the tools available.

 

 

Last week’s deals today

August 27 – August 31, 2018

~78 deals traded

 

Deal of the week

Equity investor, Veritas Capital added to its portfolio company, Verscend Technologies, with its acquisition of Cotiviti Holdings last week for approximately $4.9Bn. Per their website, the Atlanta based, Cotiviti is “a leading provider of payment accuracy and analytics-driven solutions that help payers and other risk-bearing healthcare organizations achieve their business objectives.” Both Goldman Sachs and William Blair & Co. acted as the sell-side advisors on this transaction.

 

Most active subsectors
  • IT: Software & services
  • Industrial: Equipment & products
  • Media: Marketing & sales services
  • IT: Services
Most active cities
  • Chicago
  • San Ramon
  • San Francisco
  • Dallas
  • Las Vegas

 

 

 

Photo by rawpixel on Unsplash

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