Bringing technology to the dealmaking table, Goldman Sachs bankers are equipping themselves with Gemini in a pledge to help sponsors navigate public market opportunities.
The in-house app rates companies based on metrics such as ESG issues, vulnerability to shareholder attacks, profitability and more.
Gemini, which is already being used internally by Goldman bankers, helps form the judgement of an investor on M&A opportunities but is not a replacement for the firm’s advisory services, said David Dubner, global head of M&A structuring at the investment bank.
“There are a lot of knowledgeable bankers, but the tool allows them to be far more efficient,” Dubner said, speaking over Zoom from his Long Island, New York, home.
On the Gemini dashboard, one can view the performance of public companies and its divisions, which are compared and scored based on multiple categories. Using publicly disclosed data, the formula compares revenue growth and profit margin as a percentage of sales.
For PE investors, this technology comes to use when they are evaluating potential carve out, spinoff, PIPE or SPAC opportunities.
What comes out of the system is client-ready analytics in visual form, said Asmita Singh, VP of the M&A structuring team at Goldman.
Goldman Sachs, which reported better-than-expected Q2 earnings on Monday, released the app in a climate where the transition to virtual handshakes and technology, in general, is playing a major role in dealmaking.
For companies, simplification is Goldman’s selling point.
Disposing of a business might be a better option for companies looking to improve their ESG score, Dubner said, explaining how the tool helps companies align with socially conscious investors.
The app hasn’t been rolled out for PE clients to use on their own; the general intent is for the financial sponsor to use the app and its data through the bankers.
Action Item: Check out the first report on this by Bloomberg.