Deal origination investment bankers find deals both on the buy side and working with private equity firms in order to find companies that are suitable for investment or acquisition, as well as on the sell side (working with companies in need of financing or an exit). It’s not only a fundamental element of successful investment banks, but is now a necessity online data room for all businesses that want to grow. This article will explore the most effective dos and don’ts to use for deal initiation and some strategies that young firms are employing to boost their efficiency.

Traditionally, companies have relied heavily on deal flow, which is sourced through their connections with intermediaries and owners. This is not an effective method of increasing the number of deals or the quality. It can be time-consuming and difficult to make accurate goals and forecasts if the number of lead sources is not known.

Many investment bankers are focussing on outbound dealsourcing. This method involves looking for specific types in areas where the investment banker is knowledgeable and has a network of contacts. Increasingly, this is done through online platforms, like Axial which acts as an integrated repository for deal details.

Additionally the majority of investment banks utilize technology to automatize their processes for searching and make the process of sourcing leads easier and more efficient. This allows them to concentrate their efforts on managing and building their relationships with intermediaries while also enhancing their ability to find, qualify, and connect with the best investment opportunities at the correct time.