Deal sourcing

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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.

Contents

Traditional approach

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.

Online deal sourcing

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]

See also

References

  1. 1 2 "What is Deal Origination? - Definition from Divestopedia". Divestopedia.com. Retrieved 2017-06-27.
  2. "PE's New Virtual Reality: Online Deal Sourcing Platforms - Middle Market Growth". Middle Market Growth. 2015-10-01. Archived from the original on 2017-08-07. Retrieved 2017-06-27.
  3. "The Rise of Online M&A Deal Sourcing - Wall Street & Technology". Wall Street & Technology. Retrieved 2017-06-27.
  4. "Why Your M&A Advisor Should Use Online Deal Sourcing". Divestopedia.com. Retrieved 2017-06-27.

The definition of Deal sourcing on Divestopedia