Deal origination investment banking involves sourcing deals on the buy-side (working with private equity firms to identify companies to invest in or buy) and on the sell-side (working with companies looking to raise funds or exit). It’s not only a fundamental component of a bank’s success, but is now a crucial requirement for any business looking to grow. This article will discuss the most important dos and don’ts for successful deal-making and some effective methods that the new generation of companies are using to improve their efficiency.

In the past, businesses relied heavily on deal flow that was created board portals through their relationships with intermediaries and business owners. This is not an effective way to increase the number of deals and the quality. It’s time-consuming and difficult to establish accurate goals and forecasts when the quantity of lead sources is not known.

Many investment bankers are focussing on outbound dealsourcing. This approach involves looking for specific types of deals in areas where the investment banker has expertise and has a network of contacts. It is now increasingly conducted via online platforms, such as Axial, that provide a central repository for deal information.

Additionally to this, many investment banks employ technology to automate their search processes and make the process of sourcing leads much simpler and more efficient. This allows them to concentrate on building and managing their relationships with intermediaries, while also improving their ability to spot and connect to the right investment opportunities at the right moment.