Deal origination in investment banking entails sourcing deals on the buy-side (working with private equity firms to locate companies to invest in or buy) and on the sell-side (working with companies looking to raise funds or sell). It’s not only a key part of successful investment banking however, it’s now an essential part of every business looking to grow. This article will discuss the top dos and don’ts of a successful deal origination along with some useful strategies that companies in the new school digital data room are using to increase their efficiency.

Traditionally, firms have relied heavily on deal flow from their connections with intermediaries and owners. But, this isn’t an effective method to increase the quantity and quality of deal opportunities. It’s very time-consuming, and it’s challenging to establish accurate forecasts or targets when the number of potential lead sources can be unpredictable.

Many investment banks are now making an effort to source outbound deals. This method involves looking for specific types in areas where the investment banker has expertise and has a network of contacts. The majority of the time, this is done via online platforms, such as Axial which serves as an online repository of 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 relationships with intermediaries, while also improving their ability to identify, qualify, and connect to the best investment opportunities at the right time.