How to manage deal sourcing in the virtual data room

How to manage deal sourcing in the virtual data room

For the corporate development team, the most important task is to position their company favorably in the marketplace to find potential sellers. To do this, they work hard every day, forming new relationships and practicing communication skills. In this article, we’ll look at how corporate teams manage deal sourcing, shape their goals, and outperform their competitors using a virtual data room. 

How does the creative process work? 

Below we take a step-by-step look at the steps corporate development teams take to deal sourcing. 

  • Create a database – Creating a database is key to deal sourcing. This is where you can target valuable industry association lists. It works like this: you pick an area in which your company operates and buy a list (which is generally not too high priced, in comparison to the potential profit it can bring)
  • Define your deal criteria and organize your database – Once you get your hands on a list of valuable associations, the first thing you want to do is to clarify its relevance. Think carefully about what kind of deal you want to make, consider its scope, and adequately estimate your options. After all, for example, you may find yourself on a list of giant companies like Amazon that you are unlikely to be able to afford. After that, you need to create two lists “A” and “C”. “A” deals identify a company that is ideal for you in all strategic and administrative indicators. Having these two deals will help you avoid overpayments and excessive aggression. Also at this stage, you can already engage the services of a virtual data room. And if you don’t already have your provider, choose a data room review to the requirements you need. VDR will help you organize and share your projects easily
  • How to make an effort, build relationships-you have to work carefully with your list, make constant calls on your newly acquired database, and form new relationships
  • How to get through the gatekeepers -it’s quite difficult but possible. First of all, when contacting an outside company, you should think about who you are talking to. If that “someone” is someone who may be out of a job, then you’re better off starting your conversation with topics like partnerships or growth opportunities. Not only will this put you on a more relaxed and trusting wave, but it will also help you get the information you need. If you are communicating directly with an executive, however, you must be frank about your intentions. The main trick here is to learn the names of the people you’re talking to and call them by their first name as often as possible in the conversation
  • Take a little pause – don’t immediately agree to a deal as soon as the other company has agreed to it. Think about your next plan and strategies, you shouldn’t be caught off guard by anything 

 What to do after you contact the seller

After the callback has occurred, you need to think carefully about whether it’s worth your time to pursue this deal. Check the income figures and KPIs, and if you don’t have this information, you’ll need to make the first request for permission to review the data. 

After that, you need to meet in person, make sure you have a plan at hand to lean on during the meeting. Our advice is to write out about 5 questions or topics of interest that you would like to discuss. This is so you can collate information and be sure to move forward with the transaction.

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