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 known as deal-sourcing and is essential for these firms to maintain an active pipeline of deals. It can be done through traditional methods or via online platforms.
The most well-known methods for finding investment opportunities involves interacting with both industry specialists and entrepreneurs, who can provide unreleased information regarding the company’s owner’s plans to sell their business in the near future. Investment firms should be on the lookout for industry trends and changes to anticipate what their competitors are doing.
A lot of modern investment banks employ technology solutions to speed up the deal-sourcing process, including advanced data analytics, specially-designed digital tools and artificial intelligence. This helps teams better understand their markets, streamline business processes, and turn data into proprietary advantages. Private company intelligence platforms as well as data services and business information are key to this. They help professionals discover investment opportunities making use of verified and relevant business information.
Certain investment banks have their own deal sourcing staff in-house, comprised comprising finance professionals, while others have outsourced this task to specialists. In both cases, these team members operate on a fee for service basis which means that they earn a commission each time they close an agreement on behalf of their firm.