Deal Origination Investment Banking
Deal origination investment bankers find deals both on the buy-side, working with private equity firms in order to find companies that are suitable for investment or acquisition, as well as on the sell-side (working with companies in need of financing or an exit). It’s not only a fundamental component of successful investment banks but is now a must for any business looking to grow. This article will discuss the most important dos and don’ts for successful deal initiation and also some effective methods that the new generation of firms are employing to increase their efficiency.
Traditionally, businesses have relied heavily on inbound deal flow that they sourced from their connections http://www.digitaldataroom.org/what-is-deal-origination with intermediaries and owners. However, this is not an effective way to increase the quantity and quality of deal opportunities. It is time-consuming and challenging to establish precise goals and forecasts when the quantity of lead sources is not known.
Many investment bankers are looking at outbound deal sourcing. This process involves looking for specific types in areas where the investment banker has experience and has a network of contacts. It is now increasingly conducted through online platforms, like Axial, that provide an integrated repository for deal details.
Additionally that many investment banks utilize technology to automate their processes for searching and make finding leads much easier and more efficient. This lets them concentrate on establishing and managing their connections with intermediaries, as well as improving their ability to spot the right opportunities, qualify them and connect with the most suitable investment opportunities at the right moment.