Articles on: Best Practices

Optimizing your Pipeline Phases for DealRoom

For your pipeline management in DealRoom, consider the following best practices shared by the DealRoom team and fellow users. Remember, the pipeline is highly customizable to cater to your unique needs and team dynamics.


Disclosure: The provided insights are not exhaustive; rather, they offer a starting point for your customization based on your team's specific requirements.


How to Set up Your Pipeline Phases

  1. Select Settings from the left menu.
  2. Scroll down until you see the Phases section.
  3. Click New Phase + to start creating the phases in your pipeline.


Pipeline Phases Organization

Here are some ideas on how to organize your pipeline phases, used by some of our customers.


Buy-Side Examples


1. Chronologically

This option is recommended, as it allows you to track from the beginning of the M&A lifecycle to the end. DealRoom also tracks how long each deal lives in each phase, allowing you to spot bottlenecks and improve your processes for future deals. Here are some examples of chronological phases:


  1. Target Listing
  2. Initial Discussions
  3. Indication of Interest
  4. Preliminary Due Diligence
  5. Letter of Intent
  6. Confirmatory Due Diligence
  7. Negotiations
  8. Close
  9. First 100 Days
  10. Integration



Tip: Adjust the number of phases based on your preferences, and utilize color coding for easier identification.


Note: An alternative is to use the pipeline exclusively for diligence, incorporating only relevant diligence phases.


2. By Progress Status

This option is for creating your pipeline phases by status of the deal, which can be simple or complex depending on the different statuses you prefer.


Example:

  1. Pending
  2. In Process
  3. Completed


3. Other Ideas

Here are some other ideas for setting up your pipeline.


  1. Preliminary Discussion
  2. Teaser
  3. NDA
  4. CIM Evaluation
  5. Commercial Structure
  6. Closed
  7. On Hold
  8. Go / No Go


Note: Phases don't have to be used chronologically, and can be used instead to simply categorize deals in a way you find helpful.


4. Risk and Complexity

This structure categorizes deals based on their complexity and associated risks, providing a nuanced understanding of your pipeline.


  1. Low Complexity
  • Standard Transactions
  • Routine Due Diligence
  1. Medium Complexity
  • Customized Deal Structures
  • Moderate Due Diligence
  1. High Complexity
  • Complex Negotiations
  • Intensive Due Diligence
  1. On Hold
  • Pending Regulatory Approvals
  • External Factors
  1. Closed Deals


Note: This structure provides clarity on the complexity and associated risks of each deal in the pipeline.


Sell-side Examples


  1. Prospecting
  2. Prelim Discussions
  3. Preliminary Due Diligence
  4. Engagement Negotiation
  5. Pre-Marketing Due Diligence
  6. Financial Databook
  7. Buyer List Prep
  8. Marketing Collateral Drafting
  9. In Market - Pre IOI
  10. In Market - LOI Negotiation
  11. Buyer Due Diligence
  12. Closing Phase
  13. Completed
  14. Lost


Feel free to customize these examples based on your team's preferences and specific deal characteristics!


If you have any questions about implementing these structures, creating custom phases, or need further personalized assistance for your team's unique needs, please don't hesitate to reach out to your Customer Success Manager or our support team via in-platform chat or at support@dealroom.net.


Relevant Articles:

How do I set up custom phases and fields in the Pipeline?

How do I set pipeline permissions?

How do I import and export deals in the pipeline?

Updated on: 29/06/2025

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