How can RApportTM help investment banks?

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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

Sponsors

Collaboration

In the last 18 months, we have provided your firm X ideas for platform investment opportunities, Y of which were exclusive.   
We have provided X ideas for portflio company add-ons during the past 24 months.   
We have given your firm X early introductions to management during the year.   
We have extended your firm invitations to fireside chats on Y% of our relevant processes during the past two years.   
Our firm has offered and delivered X executive introductions in Y sectors to your firm during the past 18 months.   

Sponsors

Relationship Management

We regularly review our relationship investment analysis to ensure we allocate our intellectual capital to firms that consistently reciprocate. Here is our view of our firms' relationship and where it falls relative to other sponsors.     
We have provided X ideas during Y meetings during the past two years, but we have only been given a chance to be involved in Z% of the processes your firm pursued.   
Part of our relationship investment analysis is an assessment of how well we think we worked together on opportunities. We had great experiences on the majority of our interactions, but in a few instances, we had some concerns.   
We have not included your firm in as many gold card rounds as we would like because historically you firm bid well enough to advance to a management meeting only X% of the time, which falls in the Y percentile.    

Companies

Expertise & Relationships

We have had one-on-one X meetings with Y potential buyers during the past 12 months.
We know XYZ sponsor very well. In the past two years, we have discussed investment opportunities with them in X dozen meetings and have been involved in Y% of their transactions.  
We have gathered extensive data on how potential buyers behave during sale processes and that is a factor in deciding which firms we include.   
We believe ABC sponsor is best positioned to arrange the most favorable financing for your company because X of Y of their past transactions have been oversubscribed by Z%, which allowed them to flex down on average 50 basis points.    

Sponsor Coverage

Sector Idea Generation

We should spend more time with XYZ sponsor. They have bid and advanced in X% of the processes in this sector during the past two years.  
ABC sponsor highly values idea generation. The last time we shared a unique idea with them was X months ago.
These other sectors have given XYZ sponsor three executive introductions during the past two years. Our coverage plan targets two introductions per year per sector but we haven't made any in X sector.  
We should include ABC sponsor in our gold card meetings. They have bid well enough to advance to a management meeting X% of the time they get early access to management.  

Process Optimization

Efficiency & Consistency

Here is a call list that has all of the people you said you wanted to contact every 90 days with the outstanding items to discuss.
Here is a list of upcoming meetings where someone in the firm is visiting with someone who is of interest to you. Let me know if you want us to prompt them to mention any of your high priority opportunities.  
It probably is not worth spending too much time with XYZ sponsor in the widget sector because they have not reciprocated for our idea generation efforts.   
We should consider inviting these people to our upcoming event because they are key influencers on these deals that are likely to come to market in the next 18 months.   

Sponsors

Collaboration

In the last 18 months, we have provided your firm X ideas for platform investment opportunities, Y of which were exclusive.   
We have provided X ideas for portflio company add-ons during the past 24 months.   
We have given your firm X early introductions to management during the year.   
We have extended your firm invitations to fireside chats on Y% of our relevant processes during the past two years.   
Our firm has offered and delivered X executive introductions in Y sectors to your firm during the past 18 months.   

Sponsors

Relationship Management

We regularly review our relationship investment analysis to ensure we allocate our intellectual capital to firms that consistently reciprocate. Here is our view of our firms' relationship and where it falls relative to other sponsors.     
We have provided X ideas during Y meetings during the past two years, but we have only been given a chance to be involved in Z% of the processes your firm pursued.   
Part of our relationship investment analysis is an assessment of how well we think we worked together on opportunities. We had great experiences on the majority of our interactions, but in a few instances, we had some concerns.   
We have not included your firm in as many gold card rounds as we would like because historically you firm bid well enough to advance to a management meeting only X% of the time, which falls in the Y percentile.    

Companies

Expertise & Relationships

We have had one-on-one X meetings with Y potential buyers during the past 12 months.
We know XYZ sponsor very well. In the past two years, we have discussed investment opportunities with them in X dozen meetings and have been involved in Y% of their transactions.  
We have gathered extensive data on how potential buyers behave during sale processes and that is a factor in deciding which firms we include.   
We believe ABC sponsor is best positioned to arrange the most favorable financing for your company because X of Y of their past transactions have been oversubscribed by Z%, which allowed them to flex down on average 50 basis points.    

Sponsor Coverage

Sector Idea Generation

We should spend more time with XYZ sponsor. They have bid and advanced in X% of the processes in this sector during the past two years.  
ABC sponsor highly values idea generation. The last time we shared a unique idea with them was X months ago.
These other sectors have given XYZ sponsor three executive introductions during the past two years. Our coverage plan targets two introductions per year per sector but we haven't made any in X sector.  
We should include ABC sponsor in our gold card meetings. They have bid well enough to advance to a management meeting X% of the time they get early access to management.  

Process Optimization

Efficiency & Consistency

Here is a call list that has all of the people you said you wanted to contact every 90 days with the outstanding items to discuss.
Here is a list of upcoming meetings where someone in the firm is visiting with someone who is of interest to you. Let me know if you want us to prompt them to mention any of your high priority opportunities.  
It probably is not worth spending too much time with XYZ sponsor in the widget sector because they have not reciprocated for our idea generation efforts.   
We should consider inviting these people to our upcoming event because they are key influencers on these deals that are likely to come to market in the next 18 months.   

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Let's discuss how RApportTM could help your firm stay ahead of the competition