Deal origination and investment banking is sourcing deals on the buy-side (working with private equity firms to identify companies to invest in or acquire) and on the sell-side (working with companies seeking to raise funds or even exit). It’s not only a fundamental component of a successful investment bank, but is now a must for any business looking to grow. This article will review the top dos-and-don’ts for effective deal-making and will also provide some practical techniques that new-school firms are employing to boost their efficiency.

In the past, firms relied heavily on deal flow generated by their relationships with intermediaries and business owners. This is not an effective method of increasing the number of deals or the quality. It’s very time-consuming, and it is difficult to develop accurate forecasts and goals when the quantity of lead sources could be unpredictable.

Many investment banks are now focused on sourcing outbound deals. This method involves looking for specific types of deals in areas where the investment banker has knowledge and has a network of contacts. This is increasingly done via online platforms like Axial that provide an accessible database of deal information.

Many investment banks also use technology to streamline search processes, making sourcing leads easier and more efficient. This enables them to focus on read digitaldataroom.org building and managing their relationships with intermediaries, while also increasing their ability to recognize, qualify and connect with the right investment opportunities at the right moment.