Why it works for sponsors
Portfolio companies are often mid-sized, fast-growing and buying the same stack: Microsoft, Salesforce, NetSuite, Cisco, Dell, Okta, Zoom, Slack. Vendors know who owns them and price accordingly. Few portfolio teams have the time or the vendor knowledge to push back on every renewal.
We do it for them, one contract at a time or across the portfolio. There is no budget to approve, because our fee comes from the savings. And the work stays commercial: companies keep the products and scope they need, and their vendor relationships intact.
Where we get involved
- Diligence
Before the deal closes
A read on the target's major IT contracts and where pricing can improve, to support the value creation plan.
- Post-close
After an acquisition
New ownership is a natural moment to revisit major contracts signed before the deal.
- Carve-outs
Standing up a new company
A carve-out needs every contract replaced, against a deadline and with less scale than the parent.
- Hold period
Renewals and new purchases
Portfolio companies sign a steady flow of renewals and new purchases. Each one is a chance to improve the price.
- Portfolio
Every category of IT spend
Software from the major platforms to industry-specific providers, plus telecom, cloud, AI, licensing and the long tail of smaller contracts, through our specialist practices.
How we work with sponsors
Beyond IT contract negotiation, portfolio companies can draw on our telecom cost optimization, long-tail spend reduction, AI cost optimization, cloud cost optimization, software licensing optimization and vendor selection support practices.
We work with operating partners, deal partners and portfolio company CEOs, CFOs and CIOs. Some sponsors start with one live negotiation. Others bring us in across the portfolio, and several have worked with us for years across dozens of companies in North America, Europe and APAC.
Examples from private equity portfolios include $13.0M saved on an Oracle proposal, $3.9M on Citrix, $3.6M on IBM and $3.1M on SAP.
For one sponsor, we negotiated 25 contracts across seven portfolio companies and saved $29.4M. For another, we have worked across 29 portfolio companies over five years. For a multi-billion dollar healthcare carve-out, we closed every IT contract against a deadline that could not move and saved $14.5M.
Frequently asked questions
How does Deal IQ work with private equity firms?
We negotiate IT contracts for portfolio companies, one deal at a time or as a program across the portfolio, working with operating partners and company leadership. Our fee comes from the savings.
Does the portfolio company pay if there are no savings?
No. If we do not improve the price, there is no fee.
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