If 2017 was the year of increasing costs for M&A firms, 2018 may be the biggest year for new firms entering the market to compete with yours.
To stay competitive many firms are investing heavily in back office resources in the form of research tooling and skilled labor – but even in a frothy market, these fixed costs can be hard to manage in the volatile world of M&A.
Let’s do a quick cost comparison of CAPTARGET’s research support services vs. internal fulfillment using a sample firm for reference below:
Regional, 3 Managing Directors, industry agnostic M&A firm operating in Texas and surrounding areas. The firm has been in business 15 years and takes on approx 14 client engagements each year.
Each MD is required to generate their own deal flow and manage the clients they bring to the firm. That said, they have less time to manage the deal prep and back office functions. These back office needs include: Prospect list compilation, buyer research, occasional financial modeling, industry reporting etc.
Historically, the firm has handled research in-house, carrying the following expenses:
Fully loaded, the example firm has paid as much as $102k per year to support its back office needs.
At this price point we provide the labor and the data access needed to fulfill any middle market M&A back office request.
Take the next step to using CAPTARGET’s services for M&A teams here: On-demand analysts for middle market M&A firms.