Deal origination investment bankers source deals both on the buy-side, working with private equity firms in order to find companies for acquisition or investment, and on the sell-side (working with companies in need of funding or an exit). It’s not only a fundamental element of a successful https://digitaldataroom.org/restoring-accidentally-deleted-documents-or-requests-in-a-data-room/ investment bank, but is now a must for any business looking to grow. This article will examine the key dos and don’ts of effective deal sourcing, along with some practical strategies that new-school firms are using to increase their efficiencies.
In the past time, firms relied heavily on deal flow generated by their relationships with business owners and intermediaries. However, this isn’t a reliable way to scale the number and quality of deal opportunities. It’s extremely time-consuming, and it’s hard to develop accurate forecasts and goals when the number of lead sources could be unpredictable.
Many investment banks are focusing their efforts on sourcing outbound deals. This approach involves looking for specific types in areas where the investment banker has experience and has a network of contacts. This is often done through online platforms such as Axial which provides a central repository of deal details.
In addition the majority of investment banks utilize technology to automatize their search processes and make the process of sourcing leads much simpler and more efficient. This allows them to focus their efforts on managing and establishing relationships with intermediaries, while also improving their ability to determine, qualify and connect with the most lucrative investment opportunities at the right time.