Deal origination investment bankers find deals both on the buy-side and with private equity firms to find companies for investment or acquisition, as well as on the sell-side (working with companies seeking financing or an exit). It’s not only a key element of a successful investment banking but has become an essential part of every business seeking to expand. This article will look at the most important dos and don’ts of a successful deal origination as well as a few practical strategies that new-school firms are using to increase their efficiencies.

In the past, companies relied heavily on deal flow that was produced through their relationships and connections with intermediaries and business owners. However, this isn’t an effective way of increasing the number and quality of deal opportunities. It’s a lengthy process, and it is difficult to create accurate forecasts and targets when the number of lead sources available can be unpredictably.

Many investment banks are focusing their efforts on sourcing outbound deals. This method involves searching for specific types of transactions in areas where they have expertise and a large network of contacts. It is now increasingly conducted through online platforms, like Axial, that provide an integrated repository for deal information.

Many investment banks use technology to streamline search processes, making the process of sourcing leads more efficient and efficient. This allows them to focus their efforts on managing and building their relationships with intermediaries as well as improving their abilities to recognize, qualify and connect to the best investment opportunities at the right time.

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