Kognetics is a machine intelligence platform that’s designed to automate knowledge intensive processes and bring new insights to M&A analysis and strategy development. Kognetics also enables greater productivity by automating much of the complexity involved in the M&A valuation process. Kognetics is differentiated by its capability to extract insights from our knowledge graph. The graph contains insights on people, companies, M&A activity, funding and many other variables that have been linked together.
Kognetics can increase analyst productivity on common M&A processes like normalization and comparables analysis by up to 70%. We can also ask sophisticated questions across many data sources to gain strategy insights that were previously unavailable. Kognetics makes M&A analysis and strategy development more effective and efficient. The ultimate result is improved deal flow and profitability.
We offer solutions that span the deal sourcing process, this includes: Theme Development, Opportunity Insights and Relationship Insights. Theme Development helps M&A investment professionals understand the broader domain ecosystem, identify opportunity areas and monitor the landscape. Opportunity Insights helps to determine a set of actions within the ecosystem like developing short lists of target companies in growth areas or identifying the most likely buyers for a company. Relationship insights combines our company executive information with the client’s CRM data to create a comprehensive view of key executives and influencers with fast paths to connect. Deal sourcing solutions are delivered through a managed services model.
Each deal sourcing solution has a standard set of deliverables that can be modified through a managed services agreement. Theme Development outputs include a detailed view of the ecosystem segmentation, ecosystem player mapping, trends, disruptions/dislocations and target areas to focus reflecting the firms investing criteria. Opportunity Insights deliverables include a long/shortlist of target companies or buyers and insights from questions asked of the knowledge graph in either tabular form or graphic presentation. Relationship Insights deliverables include detailed relationship maps or tabular results based on the analysis.
The Kognetics solution for M&A deal Valuation Support is a SaaS application that combines data from multiple sources with financial analytics and reporting capabilities that help analysts improve their productivity. Subscriptions are available using a per seat license model.
Our SaaS platform integrates source data, financial analytics and publishing capabilities. Analysts can export results of their analysis to Excel spreadsheets directly. PowerPoint charts can be created within the application by populating pre-formatted templates with client branding.
Kognetics addresses challenges in two critical areas:
1) Deal sourcing has become hyper competitive with everyone chasing the same companies and capital is fungible. Current methods simply aren’t as productive as they used to be. Firms need a way to gain insights that others overlook and provide a differentiated view with deeper industry and company insights to be credible.
2) Outdated analysis tools, the explosion in data, and increased complexity in reporting are straining the capabilities of analysts – impacting productivity and job satisfaction. Kognetics addresses both these issues by giving firms the capabilities to compete effectively and efficiently in this dynamic environment.
Kognetics links a huge amount of data together using our proprietary frameworks and machine intelligence technologies. We then make this information consumable to support M&A processes and one-off questions. Algorithms are applied to automate major tasks involved in complex knowledge based processes like normalizing financial statements. Investment professionals can ask questions to get insights to complex issues impacting investment decisions. This approach would be time and cost prohibitive using conventional approaches and technologies.
Kognetics is designed to integrate with the M&A analysis workflow practices of investment banks, private equity firms and corporate development departments. Whether your processes are tightly integrated or loosely coupled, Kognetics solutions can be deployed with maximum flexibility. Deal sourcing solutions use a managed services model with an assigned Kognetics account owner who ensures timely and seamless communication. Users of our SaaS solution for valuation analysis use the application directly with help desk support available as needed.
We source data from a multitude of sources and are constantly adding new providers. We have key partnerships with Morningstar and CrunchBase, among others. We also use open data sources, other 3rd party data sources and client data. Our analysts also compile data and extend the knowledge graph with insights gained from conferences and events.
Data input to our system goes through a number of checks to ensure accuracy and validity. Our analysts curate the data to ensure quality. All processing is carefully tracked so we can tie numbers and assumptions back to source data.
We provide a rich collection of queries that are highly customizable for M&A analysis and competitive strategy. More advanced or detailed queries can be created by our analyst and data science teams on behalf of our clients. Users of our SaaS product for deal valuation access the graph data directly using a comprehensive set of filters and selection criteria at the company and industry levels.
The graph is structured to answer questions related to buy and sell side opportunities. For example, questions can be developed for analysis of potential buyers and/or identify target companies for acquisition. Broad based questions can be formulated to gain insight on capability gaps for strategic players, likely areas in the ecosystem for convergence or transition, or which VC backed portfolio companies are due for an exit. The possibilities are endless and our analyst and data science teams can help frame the right series of questions to maximize insight and value.
We know that firms often use their own proprietary categories to identify and track companies. We can bridge your data to our knowledge graph to provide the analysis using the terms and structures that already align with your firm’s view. We can also upload private company data in virtually any format to enhance corporate valuations. All client data is secured and is not accessible outside your firewall.
We offer several pricing models for our solutions. Deal sourcing solutions (Theme Development, Opportunity Insights, Relationship Insights) are purchased as a managed service. Clients can select different focus areas and depth of coverage with a set of weekly and monthly deliverables. Our Kognetics SaaS product is purchased through monthly subscription on a per seat basis and includes help desk support. Other project work can also be delivered on a fixed price contract basis through our consultant teams located throughout the world.