Private equity firms are more involved in technology, and software deals are their bread and butter. While the sector is maturing the software industry is expanding rapidly and attractive to PE investors. Software deals are complex, and require the proper systems to ensure that each party has access to accurate information.
The most effective software for private equity deals comes with robust capabilities that cover every aspect of the deal’s lifecycle, from deal acquisition to portfolio management. It streamlines due-diligence procedures and facilitates efficient communication with portfolio company teams, and allows monitoring of all actions taken throughout the period of the deal’s life.
It is important to take into consideration the ease-of-use and learning curve when looking at software for private equity. An easy-to-use platform will ensure buy-in and adoption across the entire business. It will also be much less likely to be affected by the kinds of data mistakes that plague spreadsheets and email inboxes which can result in missed opportunities and costly legal penalties.
You should also look for an application that is compatible with the other tools your business uses on a daily basis. In the event that it is not, you will have to purchase additional software programs that can slow down workflows and increase security risks.
Look for software that has relationship intelligence features that help you monitor connections with industry experts, other PE firms, and syndicated deals. Reliable CRMs also offer the capability of keeping track of company, contacts, and activities in one place which reduces the time spent manually updating spreadsheets with contact details.