Welcome back. Last time we talked about the past and the present of deal sourcing. Now it’s the time to look ahead. But what do we see when we look at the future?
The market is getting more and more competitive. Deals won’t be knocking on your door. And other funds are trying to beat you to the prize. While you may originally have had a foot in the door, today’s market has become a game of inches. Half a step too late, and you don’t quite make it. Half a second too slow, and you don’t quite catch it.
The game has changed. It’s time to update your strategy. Winning should be at the heart of every strategy. And technology-driven proactive deal sourcing should be at the heart of every deal. Why? That’s exactly what we want to cover in this article. Let’s unlock the secrets of deal sourcing technology.
Ready? Let’s go.
#1 More sourced opportunities, in less time.
You are time constrained. And finding the right asset means you have to go through lots of data. But the resources to do so are simply not there. It’s what every professional experiences. And it is exactly what our deal sourcing platform does. Instead of grinding out manual work hour after hour, users can sift industry lists, scan markets and analyse target companies in a matter of minutes. And that’s only if you want to do it yourself. Because it can be done even faster. Not by you working the technology, but by the technology working for you.
#2 Sourcing engine
Specify all the preferences that you might have: Target industry; Transaction size; EBITDA cut-off; Geographical location; Equity ticket; You name it. Done? Sit back, and let the magic happen. Because Gain.pro continuously processes newly available data for you. This means that that one company that was out of scope is now suddenly in the middle of your sweet spot. Back in the day you had to find out by hours of re-analysis work. Now they just pop up on your screen. Realise what this means. It means that you create opportunities, instead of waiting for them. It means you stay ahead, instead of on the same level. It means you invest, while others are waiting. That’s what we mean when we say we help you to find, track and understand companies that matter.
Remember that tedious process to manually track deals? Update the financials of your target opportunities? Analyse what businesses have an aging owner? Monitor ownership structures? This is all extremely important. It allows you to find unique investment opportunities. But it’s also the part of your job in which you provide limited added value and enjoy the least. Non-enjoyable activities that add limited value. Some may call this the work that simply needs to be done. And they are right. It needs to be done. But no longer by you. Let Gain.pro take care of these activities. We let you take care of the rest.
#4 Reach with depth
The further your reach, the larger the potential asset base. It’s causality at its finest. But it’s simultaneously this ‘cause’ that often leads to the wrong ‘effect’. The goal is not to maximise your list of asset opportunities. That’s easy. What’s hard is to make these shallow and incomplete data points actionable. That’s what Gain.pro can do for you. We don’t help you to count the assets that you reach — we help you to reach the assets that count. Because the goal is not to find more companies, but better ones
#5 Reduce overhead, time and dependency
Deal sourcing technology is like the modern-day machine. It runs 24/7. It makes you less reliant on specialised workers. It reduces the time taken to do a job. It doesn’t need four weeks of holiday each year. It doesn’t complain about the coffee machine not working. In short, it offers all the benefits a factory owner would have told you about during the industrial revolution.
#6 Market mapping
Better asset-specific views are all fun and games. But true insights are generated when you connect the dots. That’s what our platform does for you. We combine the firmographic, asset-specific and market-wide data points — so you can fully grasp the prospect landscape, add-on opportunities and go-to market strategies.
#7 Augmented data
We used to live in a world full of problems of scarcity. Nowadays we have problems of abundance. Back in the day, we had to swim against the current to get the data; nowadays we are drowning in the overflow. We will save you from drowning — because data in itself is useless: it’s the insights we provide that you want to use. People often ask us how we are different from other data providers. The answer is easy. Some offer data. Some offer technology. Some offer human analysis. But we do it all.
#8 Fundamentals first; thesis later
Again, our platform allows you to scan assets on predetermined criteria. It seems like a trivial benefit. But in reality, it’s a crucial point. It allows you not to go with a thesis first, looking for companies that fit. No. It allows you to look for the fundamentals first. You can develop the thesis later.
#9 Look for ‘tells’
Most private companies want nothing to do with an outside investor. There are, however, quite a few firms’ characteristics that tell you that they might. An aging founder. The third generation of owners. A family-run business hiring an outside manager. These ‘tells’ tell you a story which others are not able to read.
#10 Dedicated focus on what separates you
Deal sourcing technology doesn’t allow you to just press a button, sit back and relax. No. It automates the low value-add origination activities, so you can double down on what you do best. Analysing angles. Building out market knowledge. Management dialogues. It won’t make your life easier. But it will definitely make it more fun.