The Voice of P2P Automation from the Finance Process Gurus at PayStream Advisors.

Sourcing M&A Deals in a Seller’s Market

Posted On March 7, 2013 by David Martin

It’s no secret that the mergers and acquisitions market is on fire. The Private Equity Growth Capital Council’s Private Equity Index, which records private equity buyouts and investments, increased 23 percent in Q4 (reaching its highest level since Q3-2008). Company balance sheets are flush with cash and competition for strategic deals in the P2P market is heating up as consolidation continues (see last year’s deals from SAP and Basware, among others). In this seller’s market, M&A deal sourcing professionals have their work cut out for them.

As a trusted information provider in the financial technology industry, PayStream Advisors often helps corporate M&A teams identify strategic partnerships and acquisition targets. We help businesses spot growing trends and identify actionable opportunities. But, these engagements are typically short term, as opportunities come and go, and the market adjusts accordingly. The core question, however, remains: how do M&A professionals stay informed of trends and improve their deal sourcing ability?

The former is simple: keep up with industry resources like PayStream’s blog, research, and conference events. The latter isn’t quite so easy. M&A opportunities don’t get served on a silver platter with morning coffee. But, does that mean we need to resign to the status quo? This past Tuesday, we met with Ben Harrison, President of Charlotte’s own DealCloud, to discuss that question and learn how M&A professionals are improving their deal sourcing and execution using DealCloud’s innovative technology platform. Founded in 2010, DealCloud was built to bring efficiency to M&A professionals with a mix of technology and information.

Three years in, the result is a combination of services and software that has DealCloud quickly gaining traction in the market. But are they really all that different than other deal posting websites out there? We took DealCloud for a test-spin to see what the hype was about.

Expecting to find a platform designed strictly for M&A professionals, we tried our best to go into the demo from the perspective of a corporate M&A professional. Five minutes in, however, we were surprised to discover the value the platform could bring to our research and consulting practice here at PayStream Advisors.

With personal assistance from the DealCloud team, and the help of their Match.com-like buyer and investor matching algorithms, we were presented with opportunities to connect with relevant people and companies in our industry, and market our services alongside well suited, on-going transactions. These guys have clearly thought about the range of needs and participants in any M&A transaction, and figured out how to add value throughout the deal lifecycle. Considering Ben’s history in banking, private equity, and now running a business of his own, it’s easy to see how DealCloud developed its holistic approach to deal management.

Every once in a while we come across a business that we love and have to share with our readers. With deal opportunities, networking benefits, technology to streamline deal execution, and much more, DealCloud truly has something for everyone. For all you M&A professionals out there, constantly searching for ways to get a leg up, this is one to keep your eye on.

About The Author: David Martin

David is a research analyst and consultant at PayStream Advisors where he spends most of his time asking questions, crunching numbers, and consuming vast amounts of caffeine.

Sourcing M&A Deals in a Seller’s Market

About The Author: David Martin

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