Identifying promising sellers
Once they’ve identified potential companies, Brad and Jared also need to identify shareholders looking to exit. Before PitchBook, they wasted valuable time approaching investors and individuals who were uninterested in selling. Now, they use granular fund and cap table information to find and prioritize prospects.
“With PitchBook, I can see who owns which securities, what round they participated in, what the issue price was, etc.,” says Jared. “And that’s important. Because it’s not just about identifying a holder but a relevant holder—someone who we think (based on time of investment, price-per-share, fund lifecycle, liquidation terms, etc.) might be seeking liquidity,” he explains.
Efficiently executing transactions
Access to better data also helps Brad and Jared accurately price deals, enabling them to build models (and forecast exit potential) based on original issue price, returns and other key metrics. This not only maximizes value but also reduces friction between buyer and seller, ultimately moving deals across the finish line faster.
“PitchBook helps us arrive at a value that makes the seller feel comfortable, confident and excited about the trade. And at the same time, it provides us with access to a business at a fair market discount given the security on offer,” explains Brad.
In other words, it’s a win-win.