Deal Origination Investment Banking
Deal origination is the process of sourcing deals on the buy-side (working with private equity firms in order to find companies to invest in or acquire) and on the sell-side (working with companies seeking to raise funds or even exit). It’s not just a vital component of a successful investment bank, but is now a must for all businesses seeking growth. This article will examine the key dos and don’ts of effective deal origination, as well as some practical strategies https://digitaldataroom.org/how-do-board-portals-facilitate-collaboration-among-board-members-and-management/ that young companies are implementing to increase their efficiencies.
Traditionally, businesses have relied heavily on inbound deal flow from their connections with intermediaries and owners. This isn’t the most efficient method to increase the quantity of deals or the quality. It’s extremely time-consuming, and it’s hard to develop accurate forecasts and targets when the number of lead sources could be unpredictable.
Many investment banks are now making an effort to source outbound deals. This involves looking for specific kinds of transactions in areas where they have expertise and a strong network of contacts. This is often done through online platforms such as Axial that offer an online repository of deal details.
Many investment banks also employ technology to automatize search processes, making sourcing leads easier and more efficient. This allows them to concentrate their efforts on managing and building relationships with intermediaries, while also enhancing their ability to determine, qualify and connect to the best investment opportunities at the right time.
