With the typical summer-time slowdown of the M&A market imminent, it’s important that PE firms make sure they’re in the know on active opportunities and the advisors that are keeping their lights on through the warmer months. And while most firms today are mining their historical sources of deal flow for viable opportunities, high industry churn is rendering this method ever more obsolete.
According to an SPS analysis on relationship churn, 40% of advisory firms that were active in 2021 were not in 2022, while 15% of active intermediaries in 2022 sold a business for the first time during that period. As a result, data-savvy PE firms are turning to technology to help combat CRM staleness and proactively identify new relationships with active relevant intermediaries.
SPS clients can get a full picture of intermediary activity in their target market with an Advanced Advisor Analysis – an SPS custom report. The “Triple A” report includes several distilled cuts of active advisors based on their activity and behavior, along with all the intel needed for action – deal data, names of individual professionals involved, and contact information. Here are some key features of the report:
- A customized year-over-year breakdown of advisors’ activity within an SPS client’s target investment criteria, allowing you to rank intermediaries and professionals based on their likelihood to close relevant deals.
- The report also cross-references internal pipeline data to inform you of which active advisors are new to you versus those you already have a relationship with, as well as the portion of relevant deals they’ve shown you.
- It compares YoY activity over the last three LTM periods, evaluating the change in relevant deals closed over time. This tells you which intermediaries have been consistently active or picking up steam in recent years, those that have dropped off in activity, and those that are newly active within the past year – enabling clients to prioritize relationship development with timely intelligence to optimize results.
Sample Triple A Report for SPS Clients
Most PE firms today are using their historical relationships to prioritize BD efforts, but this competitive landscape demands that we dig deeper into advisor activity than simply the count of deals closed by or sourced from them last year. With SPS, refine your strategy by segmenting advisors based on their potential value to you. Find out where to focus your outreach today!
