Online networks fuel deal flow
A slew of services don’t fit neatly into well-defined categories, but they shouldn’t be dismissed, because they can be very important for dealmakers. Axial doesn’t fit squarely in a category: It takes a hybrid online/offline approach, offering online deal management and deal sourcing along with offline elements like events.
The company’s online deal platform allows buyers and investors to source deals within specific criteria across financials, geography, keywords and more than 20,000 verticals and sub-sectors.
“There is no ability to ‘post’ or ‘list’ a deal publicly on Axial,” says Peter Lehrman, founder and CEO of the New York-based company. “This has led to Axial being a trusted resource for investment bankers, resulting in higher-quality member deal activity over the last 12 months.”
Axial is exclusively focused on lower middle market, change of control, debt, minority equity and co-investment transactions involving companies with $5 million to $150 million in revenue and $500,000 to $20 million in Ebitda. Top sectors of deal flow activity include industrial services, business services, Software-as-a Service, healthcare information technology, distribution and logistics, and manufacturing. Axial has brought more than 3,400 investment bankers and advisory firms into the fold, including Stephens, KPMG, 41 North Partners, Allegiance Capital, Copper Run Capital, Capstone Headwaters, Hilliard Lyons and Roth Capital.
Other information services include Sutton Place Strategies, or SPS, which focuses on deal sourcing. SPS shows customers deals they aren’t seeing from their regular sources. The New York firm, which helps investors optimize their business development and deal sourcing effectiveness, was founded on the understanding that better fund performance can be achieved through better deal sourcing. Clients include HighRoad Capital Partners, The Gores Group, Littlejohn & Co., Kohlberg & Co., Monroe Capital and Comvest Partners.
“Sourcing quality deals at reasonable valuations is critical to top-quartile fund performance," says SPS founder Nadim Malik. "We leverage data, technology, and automation to help investors efficiently enhance their sourcing effectiveness and closing rates. We’ve also recently rolled out customized applications for the broader M&A community, including investment banks, law firms, and lenders, that combine our proprietary data with a creative analytics-based referral approach.”
The company has also released SPS Fusion, which includes its CRM integration strategy, and SPS Alerts, which provides real-time alerts on deals closing, new active professionals in your market, and other timely information.