Closing a CAPTARGET sourced deal
May 26, 2020
One question is asked by prospective private equity clients more than any other – what happens when we close a deal that you sourced?
Our motto is "More deals, less fees."
We are not a buy-side firm, nor do we act like one. Our Deal Origination service is unique in that it allows buyers to scale their origination efforts to touch significantly more prospects, but at a low monthly fee. We find you deals, and never charge anything more than the monthly campaign cost.
This creates an opportunity for you to close deals with hundreds in thousands of dollars in saved fees, potentially.
Why don’t you accept success fees?
We do not accept success fees because it creates conflicts at scale. Consider being paid the same monthly fee by two groups. One pays a 4% finders fee and the other pays 3%. Immediately, one could argue that we would have reason to give preference to the highest paying client. This would make working for many firms simultaneously very challenging. Rather than worry about this conflict, we just did away with it all together.
Each client owns their own leads and pays nothing more than our monthly fee.
Would you consider accepting a fee from our group?
No. As we mention above, this creates conflicts that we must avoid. We appreciate the offer but its just not part of our business model – remember, we are not a buy side M&A firm.
How do you make money without success fees?
In one word – volume.
Do we really owe nothing when the deal closes?
That is correct. Again, we never take any success fees or ask for any type of bonus on the back end of a transaction. If you want to send us a bottle of wine, or a nice card we won’t argue with you but it is not required.
So, there you have it. For a fixed low monthly fee we can supercharge your sourcing effort without asking for a long term commitment or back end compensation, it is that simple.