What was once a lengthy process — like calling the movie theater to find out times for shows or dropping off rolls of film to be developed has become much more simple because of modern technology. We couldn’t change channels from our couches without a remote control. Photos would take weeks to arrive in our mailboxes with dial-up internet. In investment banking, the use of new technologies can help firms close more deals quicker and with more efficiency.
Deal origination is a crucial component of the work undertaken by investment banks as well as venture capital firms, private equity firms, and other companies looking for investment opportunities. Although it can be an arduous process, it’s critical to ensuring that these investment companies have a pipeline of potential deals.
Traditional deal origination involves interacting with business owners who are interested in buying or selling a company. This is typically done through direct mailing campaigns or by participating in M&A networks that allow investment bankers to connect with others who are looking for opportunities.
Recently, investment companies started using technology platforms to automatize certain tasks associated with deal initative. These platforms can help identify opportunities on the sell-side and buy-side, making it easier for companies to find suitable investments. These platforms also help investment bankers save time by scanning and filtering options in accordance with specific requirements. These solutions are increasingly being integrated with expert teams and collaborations with other investment firms to increase efficiency.