How Dealmakers Can Navigate the Great Resignation

Industry
Last updated:
March 14, 2022

The Great Resignation.The Great Reshuffle. The Great Reevaluation. Every day there’s a new headline about how employees are picking up and leaving their jobs in droves. 

According to the U.S. Bureau of Labor Statistics, the number of “quits” in November 2021 reached an all-time high at 4.5 million resignations. Yet the number of job openings stubbornly remains over 10 million.

In the midst of these setbacks, dealmakers are seeing record-breaking deal volume and greater competition than ever before, which begs the question: How can firms do more work with fewer people? Fortunately, advancements in data and technology are paving the way.

Dealmakers have been notoriously slow to complete digital transformation. But today’s people shortage presents firms with the opportunity to accelerate these initiatives and improve productivity and performance without adding headcount.

Here are a few critical resource-intensive tasks that firms can focus on digitally transforming to improve efficiencies and maximize results.

#1: Deal Sourcing

Whether you’re researching an inbound opportunity or directly sourcing your own, there’s an ocean of information at every dealmaker’s fingertips, with more than 2.5 quintillion bytes of data generated each day. However, much of this data is stale, incomplete, and scattered across thousands of difficult-to-analyze sources, making the sourcing process incredibly slow, labor-intensive, and inefficient.

If you’re focused on founder-owned businesses, the process becomes even messier. Your team can easily spend days or even weeks scrubbing the internet in search of relevant data — let alone trying to put these signals together to paint a meaningful picture.

A private company intelligence platform accelerates this workflow by gathering, cleaning, and organizing signal data from across thousands of sources. The best solutions use a mix of automation, machine learning, and knowledge workers to verify the information and keep it fresh.

Custom scoring functionality saves even more time by ensuring that firms focus their efforts on opportunities with the strongest thesis fit and highest potential. Custom scoring allows firms to take a structured, data-driven approach to deal making, enhancing efficiencies while also maximizing the impact of origination efforts.

For example, leveraging private company data and technology enabled leading firm LFM Capital to go from manually combing through conference lists for hidden gems to increasing directly sourced opportunities by 200% — all while improving productivity by 2.5x!

#2: CRM Enrichment

CRM is the heartbeat of the new school dealmaker’s technology stack. It provides a centralized platform to manage deal opportunities, interactions, and activities. It helps your team members work more collaboratively and avoid duplicate efforts. It can also significantly boost productivity and efficiency.

However, maximizing the ROI of your CRM investment brings its own set of challenges. CRMs are virtually useless without a consistent feed of fresh, accurate data. But manually entering this information is a tedious and error-prone process.

For instance, LFM Capital’s business development (BD) team used to spend considerable time uploading and downloading lists to and from the firm’s CRM. Sourcers would often jot notes down on Post-its or shoot each other quick emails rather than manually enter contact information, inadvertently creating data silos and inaccuracies.

Luckily, most of these activities can be automated. Choosing a private company intelligence platform that integrates directly with your CRM of choice makes it possible to pass data unearthed during the company sourcing and research process directly to the CRM — no manual entry required. Teams can even choose to automatically update this information on a regular basis, ultimately fueling more personalized outreach, better conversations, and faster deal flow.

Now, LFM automatically passes lead contact information, scores, and other data points from SourceScrub to Altvia, the firm’s CRM. Data is pushed back the other direction into SourceScrub as well. Not only does this save the BD team time, but it also helps keep their data complete, accurate, and up to date for more effective outreach.

#3: Market Mapping

Market mapping refers to researching all of the companies in a given space and then visually plotting the entire ecosystem on a grid. It’s a fundamental exercise that not only helps dealmakers understand the market and key players, but also enables them to develop unique perspectives and domain expertise. However, with about 30 million pre-transacted companies in the market alone, the process is very time-consuming.

Traditionally, dealmakers have had to rely mostly on analyst reports, Google search, PowerPoint, and spreadsheets to research, classify, and organize market maps. And while these tools still have their place in the segmenting process, there are a number of new technologies and solutions that significantly ease the pain of mapping markets for dealmakers.

A private company intelligence solution allows firms to filter lists of award winners, product reviews, or trade shows by industry and other criteria to jump start mapping exercises. Combined with a convenient extension that pulls data from the intelligence platform directly into your browser streamlines the process of reviewing candidate companies.

Industry-leading firms leverage this functionality to not only identify deals before competitors, but also surface companies with similar data signals, bubble up lesser-known bootstrapped companies, and discover potential add-on opportunities early on.

This approach enabled Datasite’s VP of Corporate Development Charles Shannon to singlehandedly build a comprehensive market map in just 4 weeks. Charles’ market map spans the M&A lifecycle as well as vertical and horizontal market expansion opportunities, and serves as the backbone of Datasite’s highly successful M&A strategy.

From the Great Resignation to Digital Transformation

As workers everywhere reevaluate their callings and career paths, retaining and hiring employees has become a challenge across the board, and dealmakers are no exception. But navigating the “Great Resignation” and challenges it brings to an already competitive space is somewhat easier when leveraging the latest advancements in data and technology.

We’ve prepared a guide with 6 questions you can ask when searching for the right private company intelligence platform to help your firm do more with less. Download it for free here and start digitally transforming your firm into a highly productive deal-closing machine!

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