Why do corporate development teams need deal management software? As recently reported by EY, private companies are poised to take advantage of better market conditions in 2021. As the global economy begins to rebound from the chaos incited by the COVID-19 pandemic, many corporate acquirers are on the hunt for their next big transaction. There’s only one problem: They’re not alone.
Competition for high-quality assets is high, and the supply is certainly limited. Today’s corporate development professionals need to act quickly to secure a seat at the bidding and negotiating tables. They also need up-to-date and accurate data to build and maintain relationships with private company owners and executives. With the extended period of remote work caused by the pandemic, it has become even more difficult for corporate development teams to make a lasting impression and showcase value.
In this article, we examine the ways deal management software supports corporate development teams, and reveal the key features and functions that transaction and business development professionals need to be successful in today’s competitive environment.
Improve deal management with custom workflows
Many corporations have small corporate development teams or even one person to manage the M&A process. These people often keep all the process information in their heads or on their desktops. But what happens when that information needs to be shared with corporate leadership or with new members of the corporate development team?
Simple tasks like seeing which deals are at which stage can be arduous without the right technology in place. Similarly, revisiting deals can prove to be impossible if there’s been turnover at the company or the deals have become stale or lost.
With purpose-built corporate development deal management software, transaction professionals and their colleagues can easily understand their deal flow and relationships. They can also configure notifications and tasks that encourage ownership and accountability. Today’s leading corporate acquirers will even visualize key deadlines and meetings in a calendar view for the deal team and C-suite to see.
Viewing deals by stage and strategy is easy when purpose-built deal management software is in place for corporate development teams to use.
Document and keep track of complex business relationships
It’s important for corporate development teams to manage their relationships directly with CEOs and other executives, but it’s increasingly vital for them to stay up to date with other deal sources. With deal management software, transaction professionals can see which bankers, brokers, advisors, and other intermediaries the corporation has sourced deals from over time, along with how many deals were sourced and which strategy those deals align with.
Similarly, corporate development software can alert teams to how long it’s been since they’ve talked to or had a meeting with a key relationship. These professionals can leverage relationship intelligence that calculates the strength of the connections between people and between firms, which makes it easier to make decisions and reduces manual, administrative research.
Corporate development deal management software makes it easy to understand the strength and depth of institutional relationships
Put data into action
Information is only valuable if it can be applied, and in the fast-paced world of deal-making, this means having data readily available wherever you are. That’s why today’s leading corporate acquirers leverage private company and transaction data to inform decision-making. This data allows even the most niche corporations to search for potential acquisition targets by sector, subsector, complex industry services, solutions, and other parameters.
Corporate development teams often don’t have robust databases of their own and rely on third parties to provide them with data. Your firm should seek out a partner that offers integrations with PrivCo, FactSet, Preqin, PitchBook, and other industry-specific data providers.
Infuse high-quality third-party data into the acquisition process by using purpose-built corporate development deal management solutions
Upgrade the deal-making process
Although competition for great assets is high, there have never been better deal management solutions available to corporate development teams. These systems, combined with the power of proprietary and third-party data, make it possible for corporate acquirers to better compete against similar companies, private equity buyers, and other entities.