Managing Relationships & Sourcing Deals: Successful CRM & Third-Party Integrations

Building relationships and closing deals are critical to the success of private equity (PE) firms and investment banks. The most efficient and effective way to build relationships is with software tools that streamline work and improve success rates. As technology continues to evolve, investment bankers and PE fund managers need to stay up to date with the latest software tools to remain competitive in their fields. 

Thanks to data providers and CRM tools, PE firms and investment banks can source and manage deals, analyze financial data, manage portfolios, and communicate and collaborate with team members.

With more and more investment banks and PE firms investing in software tools, many data providers find themselves overwhelmed by the numerous organizations wanting to integrate services with their CRM systems. We take a look at the critical need for integration services to help data providers quickly and seamlessly integrate new clients.

Low Growth for Deal Activities in 2023

In 2022, global factors had a significant impact on economic growth. According to Goldman Sachs economics research, they expect global growth of just 1.8% in 2023 as we continue to navigate recession conditions and countries reopening after the pandemic. 

Deal pipelines also slowed last year, and we could see this continue in 2023. Amid inflation and rising interest rates at the end of 2022, banks slowed the process to all the deals they oversee thanks to increased due diligence. As sellers wait for high valuations, PE fund managers will struggle to convince sellers to move forward.

It is crucial for investment banks and PE firms to establish strong relationships with their clients to ensure successful and timely deal closures. This is where technology comes in handy.

Your CRM and Single Source of Truth 

Previously, many firms viewed their CRM platform as simply a tool to record company and contact information. They didn’t fully utiliize its capabilities to extract valuable insights to make significant decisions. 

Now, investment banks and PE firms are increasingly searching for a unified platform to manage their business operations effectively. Specifically, investment banks are seeking tools like DealCloud to streamline their relationship management processes and optimize their workflow.

For PE firms, CRMs are a reminder to connect with investment banks and uncover potential deals. Since investment banks are a significant deal source for PE firms, the firms need to have access to data about investment banks at their fingertips. They can analyze their interaction history to determine if their frequent visits to an investment bank are yielding successful deals or if boutique banks with fewer visits are providing higher-quality deals. 

This type of AI-powered relationship scoring is a powerful tool used in these CRMs to identify top-performing relationships. By consolidating and analyzing data from various sources, these CRMs help PE firms and investment banks prioritize deals by aggregating all information into one place. This functionality, combined with AI assistance, enhances the decision-making process and helps firms and banks optimize their workflows.

Data providers play a critical role in this transformation by easing the burden on investment banks and PE fund managers. By integrating their offerings with the CRM, data providers offer essential information that can help firms make informed decisions.

The Case for Connecting Your CRM With Data Providers 

Many data providers offer subscription services that provide investment banks and PE firms with extensive data on companies, personnel, and revenue. This data can then integrate into the CRM platform to streamline lead generation and provide deeper insights. Here are some of the most popular software tools in the industry.

• Pitchbook
• Capital IQ
• SPS
• FactSet

These powerful tools provide critical data about organizations, including revenue, investments, financials, valuations, and contact information. When this data is integrated into the CRM, it can become more actionable to help source and manage deals. 

Integration to Drive Deal Sourcing and Management

Your CRM should be your single source of truth. However, making it such should not be cumbersome or create more work for you. To maximize the use of the CRM, we’d recommend integrating third-party solutions like data providers. 

Here are a few things to look for when integrating a third-party solution to your CRM.

• A dedicated team of API experts. You want a team of API experts specifically trained to integrate and configure software to make your adoption process simple and smooth.
• A build schedule. No one wants to be on a waitlist for software solutions they needed yesterday. Third-party solutions who partner with integration service companies, like Core10, offer quick and successful implementations, leaving you confident with your integration. 
• CRM configuration capabilities. We’ll take a step back before building your integration to configure your CRM with admins dedicated to that type of service. 

Integrating Your CRM and Data Provider With Core10

Don’t sweat it if you don’t have the bandwidth or expertise to build the integration between your CRM and data provider. 

Core10 is a knowledgeable and trusted partner that:  

• Has extensive CRM experience. Whether it’s DealCloud, Salesforce, or another CRM, we understand your current ecosystem and possess the know-how to build your integration. 
• Is well-versed in regulation and compliance. We serve the financial services technology industry, meaning our team is fully compliant with all financial regulations and best practices. 
• Understands PE firms and investment banks. Our team of integration experts has the technical skill set and a deep understanding of PE and investment banking business models.  
• Offers U.S.-based talent. Our team is 100% based in the U.S. to ensure we are readily available for collaborations and optimal communication, all at affordable rates. 

The demand for top software products is real. If your internal resources are maxed out or you need integration expertise, finding a partner to help with implementation and integration is one solution that can streamline your business processes.

We have the resources you need to configure and implement your SaaS product to make the adoption process simple and smooth. Let’s talk.