Deal Origination Investment Banking
Deal origination and investment banking is a critical process that helps private venture capital and equity firms locate, connect and then close deals for their businesses. This process is also referred to as deal-sourcing. It is essential for these firms to maintain an active pipeline of deals. It can be achieved using traditional or online methods.
Networking with entrepreneurs and industry experts is the most well-known method to discover investment opportunities. They can provide you with confidential information about future plans of a business’s owner to sell it. Additionally, it is important for investment firms to keep a close eye on industry trends and changes so they can be aware of what competitors are doing in the market.
Modern investment banks make use of technology to speed up deal sourcing process. This includes advanced data analysis digital tools purpose-built, and artificial intelligence. This helps teams better know their market, streamline business processes, and transform data into proprietary advantage. Private company intelligence platforms and data services are integral to this, since they allow professionals to research and identify possible investment opportunities using verified, relevant information about businesses.
Some investment banks have an deal sourcing staff in-house, comprised of finance professionals, whereas others have outsourced this task to specialists. The team members are paid on a fee for service basis in both instances.
