Software deals are the bread and butter of private equity companies, which are becoming active in the tech sector. Software companies are expanding rapidly and are a popular choice for PE Investors even though the business is not mature yet. However software deals are incredibly complex and require the right systems in place to ensure that all stakeholders have access to accurate information.
The best software for private equity deals has robust capabilities that cover all aspects of the deal lifecycle – from deal sourcers to portfolio management. It streamlines due-diligence procedures and facilitates effective communication with the portfolio company’s teams, and allows tracking of all actions undertaken throughout the period of the deal’s life.
It’s important to consider the ease-of-use and learning curve when looking at private equity software. A user-friendly software will ensure that the entire firm will take it on. It will also be much less likely to suffer from the kinds of errors in data that plague spreadsheets and email inboxes, which can result in missed opportunities and costly legal fines.
In addition, you should look for a platform that works well with other tools that your business uses regularly. It is necessary to purchase additional software applications that can complicate your workflows and introduce security threats.
Finally, look for software with relationships intelligence features that let you to effectively monitor relationships with industry experts as well as other PE companies to facilitate syndicated deals. A reliable CRM also has the ability to track contacts, companies and activity in one centralized location and reduce the time spent manually updating spreadsheets with contact information.