The New Age of Deal Origination

The New Age of Deal Origination

As I was responding to posts on my personal Facebook page last week I began to contemplate the impact social media has had on our lives.  Become a Fan, Like Us, Follow me, Friend me, Tweets, Posts, Tagging, News feeds, Status updates, it seems that’s all kids are worried about these days.  Then I balked at my thought process…kids?  Social media (blogging, podcasting, online video, social networking and wikis) is no longer just for teenagers and college students.  In fact, it took me less than five minutes to navigate through Facebook’s and LinkedIn’s advertising pages to determine over 112 million users on Facebook are between the ages of 25 and 64 and LinkedIn currently has grown to over 80 million active professional profiles (35 million in the US).  The numbers are astounding and lead me to believe it’s time we all change our thought process.  Social media has penetrated all aspects of the business world and is transforming the ways in which we communicate.

Recently, the Center for Marketing Research at the University of Massachusetts Dartmouth updated its annual study on the adoption and practice of social media by the Inc. 500, a list of the fastest-growing privately-held companies in the US.  The study found most businesses are beginning to recognize the importance of leveraging social media, with 91 percent of companies reporting the incorporation of at least one social media service or tool in 2009.  Respondents in the study also believe social media provides a competitive advantage, with adoption enhancing the prospect of success through practice and evolution. 

Below are five compelling reasons you should consider using social media tools to promote your firm or business.

Find Your Audience:  People are going to find you where they are, not where you want them to be.  Your target audience is constantly communicating on social media sites.  Find and identify what sites they frequent and develop a social media strategy based upon your research.

Brand Recognition: Using social media allows your company to reach a broad audience of potential investors and acquisition targets.  It augments effective and efficient communication of one’s brand which is invaluable for deal flow, fundraising, recruiting, and investing.

Increased Search Engine Rankings: Search engines like Google and Microsoft Bing are increasingly utilizing the information from social media sites to influence the rankings in search results.  Thus, establishing a presence on social media sites will enhance your visibility. 

Brand Management:  Having a social media presence allows you to better understand what current and potential customers are saying about your firm or business.  Through active social media monitoring, you have the opportunity to address negative comments and correct false or inaccurate information about your brand.

Niche Marketing: Social media allows you to cost effectively reach very specific subsets of individuals based on their personal preferences and interests allowing you to create unique social media profiles and strategies based on your target audience.

In order to stay in front of our target audience, MCM Capital Partners launched a social media campaign about six months ago.  We have implemented Facebook, LinkedIn, an RSS feed, and a weekly blog into our website in order to promote our brand, increase search engine friendliness, expand our deal referral network, and enhance relationships with those already in our network.  Additionally, we are tactically using social media tools to augment our communications to our current LP’s, prospective investors, entrepreneurs operating businesses within targeted industries, investment banks and intermediaries.  Each communication method employed and its content is viewed through the lens of “how does this help our firm” and “how does this improve the likelihood our targeted audience will find us?”  (For a more in depth view of how our firm utilizes social media please check out this case study by Navon Partners)

Private equity investing is a relationship business encompassing a relatively small number of LPs, entrepreneurs, executives, and intermediaries.  As more of our personal relationships move online, social media becomes a very cost-effective way to strengthen a firm’s corporate relationships and increase deal flow. 

Going forward, we believe, successful deal origination will no longer be restricted to attending industry or networking conferences, following up on published reports, marketing meetings with intermediaries, mailings, or cold calling campaigns.  Accordingly, at MCM we have made a significant investment in social media as successful origination will also be measured by number of visits, impressions, groups, comments, connections, subscribes, likes, shares, and re-tweets.  Is your firm ready?

For more information on our private equity firm and investment principles, contact us today.

Author Bio

Robert Kingsbury

Robert Kingsbury

Mr. Kingsbury joined MCM in February 2008. His responsibilities include the execution of investment transactions and management of portfolio companies. Mr. Kingsbury is also responsible for the sourcing of investment opportunities, leading the partnership’s e-marketing strategy, web-site design and managing and developing Limited Partner relationships. Prior to joining MCM, Mr. Kingsbury was drafted by the Pittsburgh Pirates in the 8th round of the 2002 Major League Baseball Draft. He spent six years playing professional baseball as an outfielder in the Pirates organization, participated in the 2004 Summer Olympic Games in Athens, Greece, and was a 2008 inductee into the Fordham University Athletic Hall of Fame. Mr. Kingsbury graduated from Fordham University with a Bachelor of Science degree in Finance.

3 Comments

  1. Anonymous - October 8, 2010

    I agree Bobby, Social Networking has impacted every facet of life. It is scarey to see how fast it took off from young adults to college students, professionals, businesses, government, etc. It has become the new age for communication that has no boundaries making an impact all over the globe. It is a great tool for marketing world wide. Everyone I guess will have to get on the bandwagon. My only fear is, however, that many will eliminate the personal interaction that is also necessary for personal growth as well as for networking in the work force.

  2. Robert Kingsbury
    Bobby Kingsbury - October 11, 2010

    I agree personal interaction has become less of a priority to the detriment of our youth, but it will not be completely erased by social media. Texting, shooting off a quick email, updating your status on facebook has certainly lessened face to face interaction or a meaningful conversation. In an age where information is wanted and devoured constantly businesses have to try and keep up with new avenues of communication and increase their reach to potential customers using social media. While we might agree it is somewhat displacing personal interaction, I believe businesses will continue to conform and adapt with the changing market dynamics and use it as a way to open new doors. I believe social media can and will be the genesis of many new relationships. Just as if you met someone online, at some point you are going to meet in person and develop a relationship. The social network did not displace the personal interaction it merely acted as an introduction. Social media in business may open new doors but personal interaction will continue to play an intergral part in all relationships.

  3. Private Equity | Deal Origination | Lower Middle Market - December 1, 2010

    […] Social Media:  MCM utilizes social media tools to increase brand recognition, enhance communication with our professional relationships, expand our deal referral network, drive more traffic to our website and, ultimately, to increase deal flow.  Our social media efforts include a weekly blog on relevant topics to the M&A community, a FaceBook presence to connect with our followers, personal and a company LinkedIn profile, and an RSS Feed to broadcast the latest happenings at MCM.  Check out the benefits of social media in our previous blog entitled “The New Age of Deal Orgination.” […]

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