Deal origination investment bankers source deals on both the buy-side as well as working with private equity firms to locate companies for investment or acquisition, and on the sell-side (working with companies that require financing or an exit). It’s not just a crucial component of successful investment banks, but is now a must for any business looking to grow. This article will explore the top dos and don’ts of a successful deal-making process, and also some practical strategies that startups are implementing to increase their efficiency.
Traditionally, firms have relied heavily on inbound deal flow, which is sourced through their connections with intermediaries and owners. This is not an effective method to increase the quantity of deals and their quality. It is time-consuming and challenging to make accurate goals and forecasts when the amount of lead sources is not known.
Many investment bankers are now focussing on outbound dealsourcing. This involves looking for specific kinds of transactions in the areas where they have experience and a network of contacts. This is increasingly done via online platforms such as Axial that offer an accessible database of deal details.
Many investment banks use technology to automatize their web link https://digitaldataroom.org/how-do-board-portals-facilitate-collaboration-among-board-members-and-management/ search procedures, making the process of the process of sourcing leads simpler and more efficient. This allows them to concentrate on building and managing their connections with intermediaries while improving their ability to identify and connect to the most suitable investment opportunities at the right moment.