In a groundbreaking development that promises to disrupt the market, Finquest – the leading M&A deal sourcing partner, has once again raised the bar by doubling its database to encompass 200 million mid-market private companies, through the use of AI. This milestone follows the doubling of their database to 100 million companies less than a year ago.
Industry insiders are buzzing about the potential market impact of this expansion. Tanguy Lesselin, CEO & Co-Founder of Finquest remarked, “The lower middle market is notorious for its fragmentation and lack of transparency. Our data shows that there is a massive investible universe of private companies that remains unknown and untapped. Our goal is to assist investors in identifying and evaluating more opportunities, thereby unlocking the potential of the private markets.”
Gerard Belicha, CRO & Co-Founder of Finquest, added, “While there will always be a place for relationships within a deal process, when it comes to sourcing opportunities in the lower middle market there are millions of companies and it’s simply not possible for any human to know or keep a track of them all. Being successful in that market requires a vast body of knowledge that only data can bring.”
According to the latest data and analysis from Pitchbook Data, there is far greater momentum in the lower and middle markets as the interest rate and regulatory environments remain challenging. Clive Cooper, Global Head of Private Equity at Finquest emphasized that “The days of multiple expansion are behind us, and holding periods for assets are increasing, so there is a growing need to focus on maximizing both organic and inorganic growth. This increases competition for deals in the lower-mid market, creating a greater demand to source investment opportunities with off-market proprietary targets.”
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As investors look further down the market, the pool of opportunities gives way to an ocean, and that ocean is deep and opaque. Not only is the data harder to come by, but it is also dirtier, so a large database that makes 200 million private companies discoverable in this space, is a game changer. This is where Finquest’s revolutionary approach to data comes into play, taking over from traditional sources and collection methods. Their data is uniquely gathered, augmented by the most advanced AI, and moderated by humans. In today’s world, it is this unique formula of data, AI, and people, that is required to be successful at deal sourcing in the lower middle market.
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