Deal origination in investment banking involves finding new opportunities and making them available to private equity (PE) as well as venture capital firms, and other financial intermediaries. These deals are typically the first step towards a full-blown acquisition or merger.
A small-time broker can create a mailing to send to business owners with the hope that they will need intermediary services when they decide to sell their company. A major Wall Street firm may conduct regular meetings with clients in order to secure their authority for an investment bank transaction.
Both methods are basically identical and have been in use for decades, but technology has revolutionized the game by streamlining processes, and by providing specially-designed digital tools that aid in investment banking deal sourcing. Utilizing private company intelligence platforms, advanced data analytics, and specifically designed digital solutions for investment banking can help simplify the process of finding, researching and ranking potential targets for a deal.
These digital tools improve communication between team members as well as reduce the need for manual data entry. Investment banks are able to keep track of rapidly changing deal opportunities, even when team members are not www.digitaldataroom.org/what-is-deal-origination/ physically present at their desks. These are just a few reasons why modern investment banks are using technology solutions to manage their core business operations. Find out how DealCloud helped Balfour Pacific scale their growth and improve their processes with a fully integrated platform of solutions.
