Deal Origination Investment Banking

Deal origination and investment bankers are able to source deals both on the buy-side, working with private equity firms to find companies for purchase our website or investment, and on the sell-side (working with companies seeking financing or an exit). It’s not just a crucial component of investment banking that is successful however, it’s now an essential requirement for all businesses looking to expand. This article will discuss the top dos-and-don’ts for effective deal origination and also some strategies that young businesses are using to improve their efficiency.

In the past, businesses relied heavily on deal flow produced through their relationships and contacts with intermediaries and business owners. This isn’t an efficient method to increase the quantity of deals or the quality. It is time-consuming and challenging to make accurate goals and forecasts when the number of lead sources is not known.

Many investment bankers are focussing on outbound dealsourcing. This method involves looking for specific types of deals in areas where the investment banker has knowledge and a network of contacts. Increasingly, this is done through online platforms, such as Axial which provides a central repository for deal details.

Many investment banks also utilize technology to streamline search processes, making the process of sourcing leads simpler and more efficient. This allows them to concentrate their efforts on managing and developing their relationships with intermediaries while also enhancing their ability to determine, qualify and connect with the most lucrative investment opportunities at the right time.