Deal origination bankers search for deals on both the buy-side as well as working with private equity firms to find companies for purchase or investment, and on the sell-side (working with companies seeking funding or an exit). It’s more than just a critical component of investment banking that is successful but has become an essential requirement for all businesses seeking to expand. This article will look at the most important dos and don’ts of effective deal sourcing, and also some useful strategies that companies in the new school are using to increase their efficiencies.

Traditionally, companies have relied heavily on inbound https://digitaldataroom.org/vdr-solutions-key-to-next-level-investor-engagement/ deal flow from their relations with intermediaries and business owners. However, this is not a reliable way to scale the quantity and quality of deal opportunities. It’s time-consuming and difficult to set accurate goals and forecasts when the number of lead sources is not known.

Many investment bankers are focussing on outbound dealsourcing. This method involves searching for specific types of transactions in areas where they have expertise and a network of contacts. It is now increasingly conducted via online platforms, like Axial which acts as a central repository for deal details.

In addition to this, many investment banks employ technology to automate their search procedures and make sourcing leads much easier and more efficient. This allows them to concentrate their efforts on managing and developing relationships with intermediaries, while also enhancing their ability to determine, qualify and connect to the best investment opportunities at the right time.