Deal sourcing or deal origination [1] is a term used by finance professionals such as private equity investors and investment bankers to describe the process by which firms identify investment opportunities.
Deal origination [1] largely depended on a broad network of contacts and a good reputation. Having an industry-specific knowledge and an idea of similar deals taking place in the market was considered an added advantage with respect to placing a bid.
Traditional methods of deal origination are fast giving way to online deal sourcing platforms [2] for buy-side and sell-side opportunities. [3] Several financial technology companies around the world provide services to users to enable them to go beyond their network of contacts and source deals on the basis of a variety of criteria. In addition, online deal sourcing is considered vital in M&A transactions. [4]
The definition of Deal sourcing on Divestopedia