Inven wants to build an innovative and easy-to-use tool for investment banks, private equity and consultants alike. It is very intuitive to use and much more efficient in finding all the potential deals than typical manual search. However, sometimes a varying degree of practice is needed to get all out of the tool.

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We want to support our customers in gaining all the benefits of Inven. Therefore we have listed a couple of challenges that can be easily overcome. 

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Read also seven tips to gain the most benefits from Inven’s tool. 

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Mistake #1: Not defining your criteria clearly

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Before you start using software for deal sourcing, it's important to clearly define your criteria for what you're looking for in a deal. This includes things like the industry, the size of the deal, the location, and the financial terms. 

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Spending work hours analyzing deals that aren't a good fit due to wrong criteria is avoidable. Well-defined criteria and keywords ensure that the AI/NLP technology finds all the relevant results from your investment landscape

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Mistake #2: Not participating in a 1:1 onboarding

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It is good to participate in one-on-one onboarding. During the meeting, you’ll get the groundwork for the use and also a lot of tips and tricks on how to get the most out of it. For example, you get the tips on how to find companies that have owners nearing retirement age, and how to use the AI Screener or AI Categorization feature efficiently.

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Mistake #3: Not using the software correctly

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Deal sourcing software can be a powerful tool when used correctly. This means understanding how the software works, how to best use the keywords and all the functionalities. If the use of the software is done incorrectly, it is likely to produce inaccurate results or miss out on good deals. 

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For example, with Inven it is essential to do the search well with specific keywords before continuing with the rest of the analysis. With Inven you can use keywords that you think the companies you’re looking for are mentioning on their website. You can then refine this search with negative keywords to go even more specific. This highlights the importance of 1:1 onboarding even further. By participating in the software onboarding, you make sure you know how the software works and how to get the most out of it.

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Mistake #4: Using limited amount of functionalities

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Forgetting to use all the functionalities can limit the value of the software investment. Inven’s tool provides great functionalities that make M&A professionals’ work easier. For example, the categorization tool will automatically assign the results into the right categories based on description. The AI screener, on the other hand, will analyze websites and other sources and add the promising companies to your project.

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One common mistake is not building lists inside Inven’s software and exporting them in bulk, but rather manually taking single data points and saving them into excel by hand. The list building feature makes exports and consequent analysis much easier. 

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Mistake #5: Choosing the wrong type of deal sourcing software

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There are different types of deal sourcing software in the market with different data and functionalities. One mistake is to choose the wrong type and not getting all the value that it can give. For example, if you are looking for companies globally, you have to be careful because many deal sourcing software are only limited to certain geographical areas. 

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Deal sourcing software can also limit the data points, e.g. no access to ownership data or retirement age data. Inven offers company data globally, with ownership and key decision makers’ contact information available in one platform.