Software deals are the bread and butter of private equity companies, which are becoming active in the technology sector. While the industry is still developing the software industry is growing rapidly and are attractive to PE investors. However software deals can be complex and require the proper systems to ensure that all parties have access to accurate information.
The most efficient software for Private Equity deals comes with robust capabilities that cover every aspect of the deal lifecycle, from deal sourcing through to portfolio management. It streamlines due-diligence processes, supports efficient communication with portfolio companies, and allows monitoring of every action taken throughout the life-cycle of a deal.
When evaluating software for private equity it’s essential to consider the ease of use and the learning curve. An easy-to-use platform will ensure that everyone is on board and will be able to adopt it across the entire business. It will also be a lot less likely to suffer from the kinds of data mistakes that plague spreadsheets and email inboxes which can lead to lost opportunities and costly legal fines.
You should also consider an application that works with the other tools your company uses daily. In the event that it is not, you will have to invest in additional software that could complicate workflows and introduce security risks.
Search for software that comes with relationship intelligence features that can assist you in monitoring relationships with industry experts as well as other PE firms, and syndicated deals. Good CRMs also provide the capability to keep track of the activity of companies, contacts and contacts in a single location, reducing time spent manually updating spreadsheets with contact data.