read new article at digitaldataroom.org
Investment banking, or A Deal Origination, is the primary source of revenue for many investment firms. The success of a company depends on its ability maintain a steady stream of solid investment opportunities.
In the past, firms began their acquisition and investment processes by building connections with people and companies in their local markets. They did this through personal connections, Rolodexes, golf games, lunch meetings and even attending industry conferences in order to find business owners that might be interested in selling. A firm’s M&A process today begins much earlier, with a global focus. This is due to the advances in technology in data analysis, data analysis and specifically designed digital tools.
The primary job of M&A executives and their teams is to discover companies that could be appealing to buyers and present them to business owners. If the owner decides to take up the offer and then the investment banker will be given the responsibility of advising on the deal and earn a fee if they’re successful in closing it.
Investment banks can manage the deal sourcing process internally or outsource this task to intermediaries who are experts in a particular industry or market. The intermediaries can scan for opportunities, communicate with business owners and advance the deal by handling paperwork and providing information about the market. While a valuable tool, it can be time-consuming for investment banks to search and filter through countless opportunities and rely on intermediaries who might not always have current, accurate business information.