Research on ROI of using Pitchbook to connect with PE firms for Board and other roles

To help you justify the investment in a PitchBook license and BlackmoreConnects™ membership, let’s break down the key factors and benefits visually. We’ll compare the costs, benefits, and potential return on investment (ROI) of each option, along with the risks of not investing. Here’s a visual representation to aid in your decision-making process:

Investment Justification and Trade-offs

1. PitchBook License

• Cost: $28,000/year

• Benefits:

• • • Access to comprehensive data on PE firms and portfolio companies.
    • Tools for market research, deal sourcing, and benchmarking.
    • Streamlined outreach to target 200+ PE firms.
    • Regular updates on PE market trends and firm activities.

• Pros:

• • • Extensive database and analytics tools.
    • Direct access to detailed PE firm information.
    • Facilitates identifying and targeting the right firms.

• Cons:

• • High cost.
  • Requires time to learn and utilize effectively.

2. BlackmoreConnects™ Membership (Including PitchBook Access)

• Cost: $10,000/year (with 6 conference packages)

• Benefits:

• • • Access to PitchBook data.
    • Training on PE language and interview techniques.
    • Networking opportunities with PE decision-makers.
    • Personalized 1-on-1 coaching.
    • Strategies for creating a compelling deal thesis.
    • Conferences for direct introductions to PE firms.

• Pros:

• • • Cost-effective access to PitchBook.
    • Comprehensive training and support.
    • Networking and direct introductions.
    • Ongoing coaching and personalized advice.

• Cons:

• • Additional commitment to attend conferences.
  • Dependent on the quality of coaching and networking events.

3. Doing It Yourself

• Cost: Variable (mainly your time and potentially lower direct costs)

• Benefits:

• • • Flexibility to tailor your own research and networking approach.
    • Savings on subscription and membership fees.

• Pros:

• • • Lower direct financial costs.
    • Total control over your approach and strategies.

• Cons:

• • It is time-consuming to gather data and contacts.
  • Limited access to comprehensive PE firm information.
  • There is a greater risk of missing out on key networking opportunities.
  • Potentially slower progress towards your goal.

Visual Representation

Comparison Chart

Potential Return on Investment (ROI)

Assuming a successful exit goal of $10 million:

• PitchBook ROI Calculation:

• • • Cost: $28,000/year
    • Potential Gain: $10,000,000
    • Net Gain: $9,972,000

• BlackmoreConnects™ ROI Calculation:

• • • Cost: $10,000/year
    • Potential Gain: $10,000,000
    • Net Gain: $9,990,000

• DIY Approach ROI Calculation:

• • Cost: Minimal (mainly time)
  • Potential Gain: $10,000,000
  • Net Gain: $10,000,000 (but with potentially lower probability of success and higher time investment)

Conclusion:

Justification:

• PitchBook offers comprehensive data and tools that can significantly increase your efficiency in targeting the right PE firms, albeit at a high cost.
• BlackmoreConnects™ provides a more holistic approach, combining data access, training, and networking at a lower cost, which can enhance your likelihood of success.
• The DIY Approach offers flexibility and lower costs but comes with higher risks and time investment.

Given your goal of a $10M exit and the need to overcome common pitfalls in landing a PE role, investing in BlackmoreConnects™ seems the most balanced approach. It provides you with essential resources and support while being more cost-effective than a standalone PitchBook license.

Considerations:

• Economic Downturn: Ensure that the chosen investment (BlackmoreConnects™) offers robust support during economic uncertainties. Networking and training can help mitigate risks by adapting strategies to current market conditions.

In summary, BlackmoreConnects™ stands out as the most viable option to maximize your chances of a successful exit while providing essential tools and support at a reasonable cost.

For more detailed insights on how to effectively navigate the job market as a C-suite executive and leverage opportunities through Blackmore