Deal origination is a process that involves finding opportunities for investment, be it private equity venture capital, venture capital, or other financial players. Deal origination involves spotting potential investments and pitching directly to clients, or creating deals through acting as an intermediary in the transaction.

Traditional deal sourcing relies on the connections of corporate networks and. Companies looking to raise money or acquire companies depend on these sources to learn about the market. This process is time-consuming and requires access to businesspeople who are likely to be part of the firm’s network, as well as a relationship with an intermediary for investment.

A larger investment bank could have an in-house deal sourcing team that is comprised of finance professionals who work full-time on generating new leads and developing a pipeline of investments for their firm. This strategy is dependent on the reputation and execution skills of these professionals. It’s therefore best for established investment companies that have an impressive track record of successful deals.

It’s important for any investment bank to discover new deals and maintain an active M&A pipeline but it’s a challenge to manage without the proper technology and tools. Financial technology companies have developed platforms that allow finance professionals and investors to generate and find deal opportunities with automation. These platforms can filter inbound and outbound leads based upon predefined criteria such as size of the transaction, industry and location, and can reduce the amount of time spent searching for opportunities.

A few of these platform providers also offer services to smaller groups who don’t have the funds to create their own origination teams. CAPTARGET is a good example of a service that offers a fee-for service model to assist small-sized brokers and investment banks locate business deals. These services can help you save money and get more leads, as they provide access to a vast database.

In addition to these technology-based solutions they also have a number of other methods for sourcing deals. For instance, they could provide a monthly report of their buy-side and sell-side mandates to prospective clients. They can also spot potential opportunities for investment in the market and offer the companies they represent to clients and often earn a commission if the transaction is completed. This method can be time-consuming and risky, however it can be successful if an investment banker is in good relationships with blue-chip firms. A large US investment firm recently closed a USD 2-billion merger with an Indian company after extensive deal-sourcing activities in India. The bank was successful in securing this deal due to http://www.digitaldataroom.org/what-is-operating-synergy its deep understanding and expertise of Indian economy and culture. It also collaborated with an investment banking company in the local area to ensure that it was in good hands. This level of expertise and commitment makes an investment bank an asset for any business.