Deal origination is the process of searching for deals on both sides (working with private equity firms to find companies to invest in or acquire) and on the sell-side (working with companies seeking to raise funds or sell). It’s more digital data room than just a critical part of successful investment banking however, it’s now required for all businesses seeking to expand. This article will discuss the top dos-and-don’ts for effective deal origination and also some of the most effective strategies that new-school companies are using to improve their efficiency.

Traditionally, firms have relied heavily on deal flow sourced through their relations with intermediaries and business owners. This isn’t the most efficient method to increase the amount of deals or the quality. It’s very time-consuming, and it’s difficult to develop accurate forecasts and goals when the amount of lead sources that could be used can be unpredictable.

Many investment bankers are now focused on outbound deal sourcing. This process involves looking for specific types in areas where the investment banker has experience and a network of contacts. Increasingly, this is done through online platforms, like Axial which acts as an integrated repository for deal information.

In addition the majority of investment banks utilize technology to automatize their search processes and make sourcing leads much easier and more efficient. This lets them concentrate on establishing and managing their connections with intermediaries and improving their ability to identify the right opportunities, qualify them and connect with the most suitable investment opportunities at the right moment.