What are the most effective ways to follow up after a Private Equity deal?

1 Send a thank you note

A simple but powerful way to follow up after a deal is to send a thank you note to all the parties involved, including the seller, the target company, the advisors, and the lenders. A thank you note shows your appreciation, professionalism, and goodwill. It also helps to reinforce your brand and reputation in the market. You can send a thank you note via email, phone, or even a handwritten card, depending on the situation and the preference of the recipient.

2 Monitor the post-closing adjustments

Another important way to follow up after a deal is to monitor the post-closing adjustments that may arise from the purchase agreement. These adjustments may include working capital, net debt, earn-outs, escrows, and indemnities. You need to keep track of the deadlines, documents, and calculations involved in these adjustments and communicate clearly with the seller and the target company. You also need to be prepared to resolve any disputes or discrepancies that may occur.

3 Support the integration process

One of the main challenges of a Private Equity deal is to integrate the target company into your portfolio and create value. To do this, you need to support the integration process by providing guidance, resources, and feedback. You need to align the vision, strategy, and culture of the target company with your own and address any gaps or issues. You also need to monitor the performance, progress, and synergies of the target company and report them to your stakeholders.

4 Solicit feedback and lessons learned

A valuable way to follow up after a deal is to solicit feedback and lessons learned from your team, the seller, the target company, and the advisors. Feedback and lessons learned can help you improve your deal-making skills, processes, and outcomes. You can ask for feedback and lessons learned through surveys, interviews, or meetings. You can also use them to create case studies, testimonials, or references for future deals.

5 Explore new opportunities

Finally, a smart way to follow up after a deal is to explore new opportunities that may arise from the deal. These opportunities may include add-on acquisitions, co-investments, referrals, or partnerships. You can explore new opportunities by staying in touch with your network, researching the market, and analyzing the data. You can also leverage your existing portfolio companies and relationships to identify and pursue new opportunities.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?