How corporations use private market data to get ahead
May 22, 2017
Traditionally, corporate development teams have relied on investment banks, networking and publicly available information to source and execute deals.
But as the market grows more complex, corporations are becoming more proactive. They’re turning to resources that give them direct access to detailed data on venture capital, private equity and M&A.
In this post, we break down the key ways corporations are using private market data to stay competitive. So, if you’re in corporate development—take a look!
1. Inform corporate strategy
Corporations leverage insight into private market activity to identify emerging industries they want to enter. They also dig into the major companies and trends (like valuations, deal sizes and purchase price multiples) within a specific space to see if it’s smarter to buy, build or partner.
2. Source deals
Detailed information on companies—including industry, financing history, valuations, investors, revenue and other key financials—enables corporations to search for promising opportunities and determine if a target is a good strategic fit. Plus, they can look at which companies are in venture capital and private equity portfolios (VC and PE firms are experts at identifying the best opportunities) to find top targets.
3. Execute deals
Corporations use detailed precedent transaction information—from valuations to multiples—to build more accurate comps and price deals. Insight into a company’s capital structure and series terms helps corporations when they’re entering a negotiation.
4. Track competitors
Using private market data, corporations keep tabs on their competition and see when new companies enter their industry. Corporations often look at competitors' previous investments and acquisitions to better understand their strategies.
5. Build partnerships
Data on VC and PE funds (like industry focus, investments and returns) helps corporations see which financial sponsors are making the most successful investments in their space. Then, they can connect with investors about exiting their portfolio companies or co-investing in a promising opportunity.
If you’re looking for private market data that will help you do all the above, consider the PitchBook Platform—the most comprehensive VC, PE and M&A database.