Investment banking, also known as Deal Origination is the primary source of revenue for the majority of investment firms. As such, a firm’s success depends on their ability to maintain a consistent pipeline of solid investment opportunities.

In the past, firms began their acquisition and investment process by establishing relationships with corporations and individuals in their local markets. They did this via personal connections, Rolodexes, golf games lunch meetings and even attending industry events to meet business owners that might be interested in selling. These days, a firm’s successful M&A process begins earlier and has a more global focus, due advances in technology data analytics, data mining, and specific digital tools.

M&A firm management and their team’s primary job is to spot companies that might be attractive to sell on the market and present these to business owners. If the owner decides to take up the web link offer and then the investment banker gets a mandate to advise on the deal, earning a commission if they are successful in closing the deal.

Investment banks can manage their deal solicitation internally or outsource the job to intermediaries who are experts in a particular market or industry. They can search for opportunities, talk to business owners and move forward with the deal by handling paperwork and providing details about the market. While they can be a valuable tool it is time-consuming for investment banks to search and filter through countless opportunities and rely on intermediaries that may not always have accurate, up-to-date business information.