Fractional Corp Dev Service Leveling The M&A Playfield

April 14, 2023
Mergers & Acquisitions
Programmatic M&A

Strategic Intelligence has hit the ground running! M&A deal sourcing is disrupted!

Moving ahead of the frenzy of AI chatbots; M&A enthusiasts have innovated a Partial Corpdev Muscle that not only promises high-speed qualified target sourcing but also takes charge of introducing sellers with complete stakeholder management.

Yes! an end-to-end deal sourcing service. Sounds too futuristic. Right? You will be surprised to learn that this partial function is quick, reliable and secure too!

For decades, IBs have been nose dipped into networking, maintaining corporate relationships, carving strategies, constructing pipelines and then running through breathtaking negotiations. But, with this phenomenal breakthrough that sprouts strategic intelligence in dealmaking, all cumbersome workflows are vanishing. Adding cherry on the top, this freshly minted partial corpdev muscle assures to provide Strategy, Intelligence, Experience, Emotion and the balance of all, just in one bucket.

Making it unique is its affordable, accessible and agnostic nature! But, is your company fit for it? That’s the true differentiator. Check the illustration below and spot your M&A leverage!

What is this so-called Partial CorpDev Muscle? Why is it partial in nature?Is it a new IB system, market intelligence or a collaborated effort of some corpdev scientists turning chaotic deal sourcing into a robust digital solution? Is M&A experiencing a silent Wave of revolution?

Let’s cut to the chase and take a panoramic view to all these questions. But, before that, let’s look at the scope of these functions and understand who can benefit from it. Furthering ahead, this blog will also explore who is the industry leader in this approach!

Does this partial function fit every business shoe?

This trend has paced up among the mid size companies ecosystem, where deal value is high and deal volume is fairly in the range of $5-$50 Mn. Deloitte research predicted an increase in the number of deals by 70% with a rise in this trend. Also, with more deals/year, companies have been looking to reduce deal sourcing time and minimize resource allocation.

But, the larger question with this newly developed function is, “who can use it and when it can be used?

The new M&A genie is for everyone. Majorly, if you are looking for companies who exist on the digital map of the world, then you must tap into this model and add it to your corpdev strategy just like any other extension you add to your search engine (Google / Explorer / Safari).

Being sector agnostic, this end-to-end deal sourcing model fits every shoe. Whether you are a seasoned startup, first time founder with no corpdev team, or a company with no corpdev function at all, this model will not only fit into your system but also revamp it with increased sourcing speed and alongside, enhanced with quality ’Ready to Acquire’ targets.

Inhouse Corpdev Team:

In the modern age, inhouse teams should be focusing on transaction and integration, which is where deals fail.

  • Deal sourcing, being the primary phase, can be executed by this partial arm that takes care of a qualified pipeline, seller introduction and negotiations.
  • Post this, the inhouse corpdev legal counsel and financial analysts can take care of due diligence and deal transaction complexities.

With the initial footsteps in M&A ecosystem, taking up on sourcing, negotiations and integration is surely too much to digest. The pressure is high and offerings are too low. Every place you go, you will notice the workflows getting more and more complex. But, there’s still a silver lining. Let’s know how!

First Time Founders:

For first time founders, deal sourcing can be done with these partial corpdev services. It will include searching, screening, validating and ultimately building a qualified M&A pipeline for you.

  • Once the negotiations succeed and LOI is released, IBs are the most sought after solution to help with transaction support.
  • If investment bankers are not your go to preference, founders can also take the charge in their own hands and carry out due diligence, transaction support and integration through inhouse resources under self supervision.

Also, with changing times, companies who have no corpdev team at all have been trying their hands on M&A. This especially happens when a company has freshly entered on the inorganic growth road!

Being a shining armor, this partial function takes care of this segment too.

No CorpDev team:

Without a Corp Dev team, M&A can feel unimaginable. But, just like technology, corpdev functions are also evolving and the partial model can be the best match in such a scenario. All that is needed is collaboration with such partial corpdev services.

  • In such a scenario with no corpdev team at all, these services, due to its vast network can also refer to the best fit third party legal and financial consultants who are affordable and trustworthy too!

And, when should it be used?

No wonder if tomorrow, a corpdev head or a CEO or a CFO, while sipping a drink at the Pacific or Atlantic ocean realizes that a product, geography or technology will disrupt the industry and raises a mandate at any such corpdev platform.

This function works at such a lightning speed that as soon as one’s back from the vacation, one can have a rich list of qualified ‘ready to acquire targets’ that are highly vetted and quintessentially matches the requirement as exactly as expected.

However, it is recommended by Mckinsey that, “deals should start once corpdev and CEOs have a robust M&A strategy in place which is aligned with their corporate strategy.” So, if you have plotted your inorganic growth ambition into your M&A strategy, you are ready for your acquisition spree!

What is this so-called Partial Corpdev Muscle?

Mckinsey in 2019 coined Programmatic M&A (small but multiple acquisitions) which is an effective strategy for corpdev success. Soon, functional leaders started eyeing on the possibility that the rising number of deals will create more challenges for deal origination. Adding up, thought leaders also started predicting that modern age businesses will demand a quick deal sourcing in order to tap into various geographies, product markets and technologies. Driven by these necessities, M&A disruptors started leveraging these partial corpdev services aka Fractional Corpdev Services.

Put simply, source quality targets, that are vetted by technology which is followed with IB level screening and speeding your M&A with high quantity and quality.

Wrapping Up

Fractional corpdev services are empowering all major stakeholders of the M&A ecosystem. Adding cherry on the top, these services have become sector agnostic in the new age business space, giving them an additional benefit of having a 360° view of M&A market, enabling them to build real time intelligence around every major industry, product line, technology, and geography. But, the actual game changer is the strategic and intuitive intelligence that comes with the two dimensional sourcing and screening. Interested in knowing more about Fractional Corpdev Services and its benefits over conventional deal sourcing practices ? Our next blog will explore advantages of Fractional Corpdev Services, especially focussed on end-to-end deal sourcing! By now, one might start thinking about, where to find such services? It’s no brainer to say that a major disruptor in the Indian, US and LATAM region is Growthpal. As an end-to-end deal sourcing provider, Growthpal is involved with building a qualified M&A pipeline (with high accuracy, starting in just 2 weeks) and introducing sellers followed with due diligence and transaction support as an additional benefit. To leverage this Fractional Corpdev Service, connect with us!

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