Importance of Outsourced Research for Private Equity Firms

Posted by Ankit Kohli on January 29th, 2016

Private equity drives the development and growth of unlisted businesses. Value creation is chiefly based on the operational efficiency and increased growth of the investment. Private equity deals and investments can be categorized based on several life cycle phases, starting from establishing a fund to mapping potential investments, making the actual investment, developing the target company, and implementing an exit strategy. Throughout these phases, and even through the pre-deal and post-deal stages of the investment, careful study of all aspects of the investment is critical to ensure sound and profitable decisions in the long run.

Outsourcing private equity research solutions across the lifecycle of an investment enhances every stage of the process, ranging from idea generation to deal sourcing, portfolio management, and exit planning activities. All these result in highly profitable and sustainable returns. Research companies specializing in private equity research offer expert solutions that help support private equity firms across the lifecycle of each investment. They offer market intelligence support that optimize the different stages of investment starting from the identification of investment themes and acquirement targets to deal evaluation and portfolio monitoring, down to exit planning and investor and fundraising management. Having skilled and experienced analysts that follow flexible engagement models by your side equips your company with invaluable research capabilities that help optimise your research processes throughout each step of the investment cycle.

Here are major benefits of outsourcing research for private equity firms based on different investment stages:

•             Investment strategy development – optimised market landscaping and market opportunity assessments.

•             Target identification – improved deal sourcing, company profiling, and preliminary screenings.

•             Due diligence – accurate investment theme validation, strategic analysis, and valuation support.

•             Performance improvement – ongoing market intelligence and well aggregated benchmarking reports.

The importance and benefits of pre-deal, deal, and post-deal solutions cannot be discounted, as these are also aimed at the success of each private equity investment made. Pre-deal solutions help clients validate investment ideas and hypotheses based on sound and in-depth research and analysis of markets, investment themes, and sectors. Deal and post-deal solutions help clients execute their potential deals and maximise success, as well as monitor their investment portfolios closely.

The best research companies that specialize in these solutions are adept at using both top-down and bottom up approaches in analysing and identifying investment opportunities depending on the target's market structure. All information are gathered and analysed to ensure investment feasibility and overall success.

About the Author:

Pure Research provides customised research and business intelligence to corporates, public sector organisations, financial services firms, and professional services firms worldwide.  The company delivers high quality procurement and supply chain intelligence to procurement professionals and their organisations. It provides business and market intelligence to strategy and marketing teams at corporations, and to professional services firms. Pure Research also provides customised financial research and ESG research to financial services firms. Analysts from Pure Research work as an extension of their client organisations to deliver high quality research and insights. The company has offices in London, U.K. and Delhi, India.

Business Name:  Pure Research Private Limited

Contact Person: Ankit Kohli (Director)

Address: Kemp House, 152 City Road, London EC1V 2NX

Phone: +44 (0) 20 7193 9497

Email: contact@pureresearch.co

Website: http://pureresearch.co/

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Ankit Kohli

About the Author

Ankit Kohli
Joined: October 28th, 2015
Articles Posted: 22

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