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Areas of Interest
The ability to substantiate unique capabilities and relationships can create competitive advantages in a number of areas:
- Platform Marketing – Establish credentials other firms cannot easily counter by using innovative perspectives to frame comparisons
- Financial Sponsors – Become a preferred adviser for M&A and financing
- Companies – Become “the house bank” by showing the breadth of knowledge, experience, and industry contacts
Potential Benefits
There are a number of potential benefits, both financial and non-financial:
- More Mandates – Win more pitches
- Favorable Negotiations – Make compelling arguments during fee negotiations by documenting how the firm has been actively providing value
- Enhanced Sponsor Coverage – Have data that can help ensure firms reciprocate for proactive, thoughtful origination efforts
- More Exclusive / First / Early Calls – Create mindshare that can help ensure inclusion on shortlists and avoid deals done away
- Proprietary Insights – Use preferential access to financial sponsor partners and company management teams to develop unique ideas
- Optimal Buyers Lists – Supplement selection processes with analyses of previous behavior, both of the potential acquiring firm and the decision-makers involved
- Better Market Intelligence – Identify potentially actionable events such as executive transitions and litigation
- Firm-wide Brand Promotion – Easy to use tools that provide the right data at the right time
Available Resources
Your firm has assets other than capital that can be used to generate benefits:
- Intellectual Capital – Sector expertise; insights into companies of interest to sponsors
- Expert Contacts – Ability to make introductions to sponsors and management teams
- Sell-side Processes – Invitations valuable, particularly for exclusive and limited processes
- Preferential Introductions – Pre-process introductions to management and fireside chats
- Process Execution – Thoughtful, well-implemented processes reinforce reputation as a market leader
- Creative Financing – Establish the Scarcity principle by demonstrating a history of creativity
- Considerate Relationships – Reasonable terms and approach to commitment terms and fee requests
- Data Goldmine – Capturing and leveraging data can make all this possible
- Process Execution – Wide-spread adherence to adopted protocols ensures seamless operation and messaging
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How can RApportTM help apply the
Principles of Influence?
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Facts and processes that reinforce your point can affect a desired outcome
Reciprocity
Idea generation for sponsors
Sector expertise
Insight into target companies
Executive introductions
Relationship investment analyses
Scarcity
Sell-side processes
Exclusivity of insights
Limited number of introductions
Creative financing
Relationship investment analyses
Authority
Relationships with financial sponsors
Sector activity: # deals / market share
Number of exclusive mandates
History of successful financings
Industry awards and recognition
Consistency
# deals involved w/ particular sponsors
Sponsor inclusion in X% of sell-side processes
# of early and/or exclusive looks given
Frequency of meetings and ideas generated
Liking
# of previous deals together both as a firm and personally
Appreciative, personal comments during meetings and other events
Systematic congratulatory notes regarding successful transactions with other firms
Alignment of coverage between firms
Systematic monitoring of news source to recognize matters of personal interest and generate personal notes
Optimization of invitations to entertainment/relationship building experiences
Consensus
Sector activity: # deals / market share
Financing league tables
Pitch / win rate
Pitch opportunities relative to other sponsors
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What are some of the things you will be able to say?
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Multiple Principles can be reinforced with a statement
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See how other groups
can generate alpha
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