The Private Equity Toolkit
A Step-by-Step Guide to Getting Deals Done from Sourcing to Exit
Tamara Sakovska
- English
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The Private Equity Toolkit
A Step-by-Step Guide to Getting Deals Done from Sourcing to Exit
Tamara Sakovska
Informazioni sul libro
Master the navigation of private equity deals from sourcing to exit with this comprehensive guide
The Private Equity Toolkit: A Step-by-Step Guide to Getting Deals Done from Sourcing to Exit offers readers the first complete guide to executing a private equity dealfrom start to finish. Written by an accomplished professional with twenty years of experience in the private equity space, this book is perfect for current private equity analystsandassociates, as well asbusiness students and professionals seeking to enter the private equity field.
This book covers every stage of the private equity process, from sourcing the deal to company exit. Itprovides a systematic overview ofhow to:
· Originate attractive investment opportunities;
· Generate superior deal insights;
· Form effective working relationships with management teams;
· Add value on portfolio company boards; and
· Achieve profitable investment exits.
The Private Equity Toolkit equipsits readers with actionable frameworks and proprietary tools that can be appliedon a daily basisin the private equity industry. The content foundwithin is designed to be current and helpful for years to come and appeals to a global audience.
Domande frequenti
1
First Thoughts on Deal Sourcing
Key Topics in Chapter 1:
- Why deal sourcing remains an obscure field
- Six action steps to take today to enhance your deal origination prowess
- Proven deal sourcing strategies and the search for the mythical proprietary deal
- How to assess your current deal sourcing capabilities
- Key trends to look for now to spot future private equity deals ahead of others
Introduction to Deal Sourcing
- Commit. Make deal origination an institutional priority and aim to create a sustainable long-term competitive advantage both for yourself as an investment professional and your firm through sourcing high-quality investments. This means dedicating time to deal sourcing throughout the year even when it seems like there is no time for it.
- Organize chaos. Deal sourcing is tricky because it is an informal process that involves many variables. Decision-makers change their minds. Companies get taken over by strategic investors and cease to be private equity targets overnight. What can you do when things seem out of your control? Attack the mercurial nature of deal sourcing by turning your reactive activities into a number of intentional and predictable routines. Systematize your efforts and turn them into a framework. Focus on perfecting your deal sourcing process and do not pay excessive attention to interim outcomes. A better process will eventually lead to superior results.
- Conduct deep industry research. Create a unique information advantage for yourself and your team by developing expertise in a couple of industry subsectors. Make sure you build a detailed knowledge base in these subsectors, generate your own insights and initiate a flow of proprietary deal ideas. How do you do that? I have spent many late nights leading various industry “deep dives” and have developed my own framework for tackling this exercise. I will share these tactics with you later in the book.
- Prepare your firm to move quickly. Institutional agility can be a remarkable advantage, especially in a highly competitive deal environment. It is important to provide regular updates to your firm, especially your investment committee and key decision makers, on the main investment themes that you are working on. The goal is to get as much support as possible and ensure that everyone is aware of the detailed knowledge your team has acquired through deep research. One of the best ways to do this is for your team to develop and share their proprietary analysis of a sector with the rest of the firm. That way, once you identify a suitable deal in this industry, your investment committee should already be warmed up. They will trust your team to come up with a differentiated “deal angle,” giving you the ability to move forward with confidence and progress the deal ahead of your competition.
- Develop an efficient deal sourcing process. Take a step back and identify the areas of your deal sourcing process where most of your time is wasted. Does it feel like you are busy creating too many options by doing 1,000 things? Are you attending too many meetings with intermediaries who miss the point of your mandate and bring deals that make no sense? Is your deal sourcing network fully optimized? Are your meeting notes well-organized, searchable, synchronized and easy to access, both in the office and remotely?
- Persist, smile, repeat. Now that you have created a proactive deal sourcing work plan, make sure there are dedicated slots reserved in your calendar to keep the process moving. Deal sourcing should be relentless and tick away with the dependability of a clock. Do not be tempted to drop out of the deal origination process, even during busy times. You can simply do less deal sourcing work during busy weeks. The only way to beat your competition is to work smarter. Take the time to put necessary reminders in your system for any follow-ups and be disciplined about following through completely. Do your best to maintain a positive spirit when deals disappoint. Take a deep breath, smile, move on and start again. Deal sourcing is simply a fixed number of efforts, persistent and repetitive, that eventually result in a big payoff.