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Deal Origination Investment Banking
Deal origination investment banking involves finding deals on the buy-side (working with private equity firms to locate companies to invest in or buy) and on the sell-side (working with companies looking to raise funding or exit). It’s not just a crucial element of a bank’s success, but is now a must for all businesses seeking growth. This article will look at the top tips and tricks of effective deal origination, as well as a few useful strategies that companies in the new school are implementing to increase their efficiencies.
In the past, businesses relied heavily on deal flow generated by their relationships and interactions with intermediaries and business owners. But, this isn’t an effective method to increase the number and quality of deal opportunities. It’s extremely time-consuming, and it’s challenging to establish accurate forecasts or targets when the number of potential lead sources can be unpredictably.
Many investment bankers are focused on outbound deal sourcing. This method involves searching for specific types of transactions within areas in which they have expertise and a solid network of contacts. Increasingly, this is done via online platforms, like Axial which serves as an online repository of deal information.
Additionally that many investment banks utilize technology to automate their search procedures and make the process of sourcing leads much simpler and more efficient. This allows them to focus their efforts on managing and building relationships with intermediaries, while also improving their ability to determine, qualify and connect with the most suitable investment opportunities at the correct time.
