Deal origination is the process of finding new opportunities for private equity (PE) firms as well as venture capital firms and other financial intermediaries. These deals are often the first step toward an actual merger or acquisition.
A small-time broker may create an email to send to business owners with the hope that they’ll require intermediary services in the event that they decide to sell their company. A major Wall Street firm may conduct regular meetings with clients in order to obtain their permission for an investment bank transaction.
Both methods have been utilized for a long time. However, technology has transformed things by streamlining processes and creating digital tools specifically designed to aid with deal sourcing in the investment banking industry. Private company intelligence platforms, advanced analytics, as well as purpose-built digital tools for investment banking in identifying and analyzing potential targets for an investment.
Digital tools can also enhance communication between team members and reduce the need for manual data entry. They aid investment banks in staying up-to-date with fast-moving deal opportunities, even while team members are traveling and unable to physically be at their desks. These are some of the reasons that modern investment banking firms are increasingly turning to technology solutions for their primary business operations. For instance, see how DealCloud helped Balfour Pacific Capital improve their processes and scale their growth with a fully integrated platform of solutions.