Deal Origination Investment Banking

Deal origination investment bankers source deals both on the buy-side as well as working with private equity firms to find companies seeking investment or acquisition, and on the sell side (working with companies seeking funding or an exit). It's not only a fundamental component of successful investment banks but is now a necessity for all businesses that want to grow. This article will explore the key dos and don'ts of a successful deal origination as well as a few useful strategies that companies in the new school are implementing to increase their efficiency.

Traditionally, companies have relied heavily on http://www.digitaldataroom.org inbound deal flow, which is sourced through their connections with intermediaries and owners. This isn't the most efficient method to increase the quantity of deals or the quality. It's time-consuming and difficult to set accurate goals and forecasts when the quantity of lead sources is not known.

Many investment bankers are now looking at outbound deal sourcing. This method involves looking for specific types in areas where the investment banker has knowledge and has a network of contacts. Increasingly, this is done via online platforms, like Axial which acts as an integrated repository for deal details.

Many investment banks also utilize technology to automatize their search processes, making the process of sourcing leads simpler and more efficient. This allows them to focus their efforts on managing and building their relationships with intermediaries as well as improving their abilities to find, qualify, and connect with the most suitable investment opportunities at the right time.