Matchmaker, Matchmaker, make me a match

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In an effort to expand networking capabilities for clients, Foley & Lardner, LLP, recently introduced a innovative tool designed to increase peripheral business.

Launched in October, the Private Equity Matchmaker (PEM) is expected to help attorneys within the firm refer business opportunities to clients. The online program is thought to be unique in its technological bridging of business and legal service.

“I think virtually all business law firms are involved at some level in helping their clients find financing for the clients’ businesses,” said attorney Anne E. Ross of Foley & Lardner in Madison. “Foley’s approach with Private Equity Matchmaker is different in that we have developed an in-house, proprietary software tool that continually searches our database, generates potential matches, and automatically generates an e-mail providing the referring attorney with the information needed to make the referral.”

Ross has worked in business law with Foley & Lardner for 25 years and is a partner in the Private Equity & Venture Capital and Commercial Transactions & Business Counseling Practices.
Making Connections

Foley’s PEM tool is designed to aid attorneys in effectively recognizing and passing on prospective deals to private equity fund clients.

Much like an online dating program, “seekers” are matched with “sources” based on criteria including transaction size, development stage, location and type of business attorneys are notified via e-mail of a potential client connection.

“As an attorney in Foley’s Madison office, by entering a client’s information into the ‘fund seeker’ questionnaire in PEM, I am able to identify potential funding sources throughout the country to whom one of my colleagues can introduce the client,” said Ross. “A personal introduction can often make the difference in bringing a funding prospect’s business plan to the top of the pile for review and consideration.”

Both seekers and sources are also given a productivity rating by PEM. An escalating scale of chili pepper icons is used with five being considered the hottest in terms of activity.

Prosperous Process

Foley estimated that PEM currently has over 150 sources and 50 seekers. Ross stressed the significant benefits for both sides, built on speed and efficiency.

“For companies seeking funding, it can be difficult to identify appropriate funding sources and determine the best approach to be seriously considered for funding,” said Ross. “So we can add value on both sides of the table by acting as matchmakers and distinguish ourselves from other law firms if we can do this faster, more often, and with better results for the companies and the funds.”

With the significant exchange of information, attention to detail is essential for attorneys who must abide by ethical legal and business guidelines.

“Of course we have to take care not to disclose any confidential information without client consent, and to address potential conflicts of interest in an appropriate manner,” said Ross, who added that the referral process requires a time investment that could otherwise be spent on billable work.

Untapped Resource

While Foley & Lardner has a structured system for referrals, other large firms in the area operate on a more informal level without tracking or consistency.

Sue R. Berg, marketing director at DeWitt Ross & Stevens, S.C., in Madison believed that attorneys likely engage in casual recommendations, but she was unsure how regularly the process occurred.

“It’s likely that an attorney of ours has given a client some business information and another attorney has overheard the discussion and suggested his client as a potential investment partner,” said Berg.

Cindy Lorentzen, marketing specialist for Godfrey & Kahn, S.C., in Milwaukee said the firm does not have any type of program pertaining to referrals at this time, but she also thought informal referrals happened on occasion.

“We don’t have anything in place at this time, but it certainly seems like a good idea,” said Lorentzen.

The belief that numerous attorneys engage in linking clients to funding opportunities via a tedious series of e-mails or imprecise match-making methods is what prompted Foley & Lardner’s development of PEM.

“I think most successful business law attorneys make customer referrals to financial institutions and other funding sources with whom they have relationships,” said Ross. “I suspect it won’t be long before we see other law firms following our lead.”