Deal origination involves creating new opportunities for private equity (PE) companies, venture capital companies and other financial intermediaries. In many cases, these deals are the first step in the process of constructing a full-fledged merger and acquisition deal.
At the lower end of the market A small-time broker may create an email list to send out to company owners hoping that they’ll need intermediary services when they decide to sell their business. A large Wall Street firm may conduct regular meetings with clients in order to secure their authority for an investment bank transaction.
Both methods are basically the same and have been around for decades, but technology has changed the game by streamlining processes and supplying purpose-built digital tools to help with deal sourcing for investment banks. Using private company intelligence platforms, specialized data analytics and specialized digital solutions for investment banking can help in identifying, researching and evaluating potential targets for a deal.
These digital tools also enhance communication with team members and reduce the requirement for manual data entry. They allow investment banks to stay in the forefront of rapidly changing deal opportunities even when team members are traveling and not physically at their desks. These are a few reasons that modern investment banking firms are increasingly turning to technology solutions for their main business operations. For example, check out how DealCloud helped Balfour Pacific Capital improve their processes and accelerate their growth by integrating a complete platform of solutions.