New York, November 30, 2016 – CEO, Nadim Malik joined an astute panel of deal experts to discuss Ten Ways to Boost Deal Flow. The event took place at PartnerConnect Southwest 2016 at The Joule Hotel in Dallas. The conversation surrounded the latest trends in deal origination, as well as methods to improve deal flow in the coming year.
As part of that discussion, Malik identified the following conditions that are impacting deal flow:
- Private equity deal flow is increasing consistently year over year, yet closed deal activity is flat. This indicates that many marketing processes are becoming more efficient.
- Current market dynamics are driving up valuations, making it harder for deals to cross the finish line. Part of the valuation challenge is a firm’s sourcing strategy.
- Increase in LP due diligence focused on deal sourcing as a path to better fund performance.
Targeting intermediaries that run limited process as part of a firm’s deal sourcing strategy will keep entry multiples low, ultimately leading to better fund performance. Earlier this year, SPS launched the Sell-Side Process Index to classify the type of closing process that intermediaries typically employ. Importantly, this Index identifies firms that run the most limited processes.
Malik suggests three methods to boost deal flow in 2017:
- Hire business development professionals.
- Implement a systematic way to mine your pipeline for broken processes.
- Be strategic in your outreach – prioritize firms that run limited processes.
The Panel was moderated by Brooks Crankshaw, Founder & CEO of Highland Ridge Capital. Panelists included Ted Kramer, President, Hammond Kennedy Whitney; Andy Rabin, Managing Director, J.P. Morgan; and Nicholas Stone, Principal, Cyprium Partners.
About Sutton Place Strategies, LLC
Founded in 2009, Sutton Place Strategies is dedicated to helping investors, corporate buyers, lenders and advisors maximize their business development effectiveness. The firm’s core service, Deal Origination Analytics™, is the convergence of actionable data with proprietary technology that is designed to quantify the addressable universe of a client’s target market, serve as a roadmap to improve deal sourcing, and measure progress on a continual basis.