http://www.digitaldataroom.org/what-is-operating-synergy
Deal origination and investment banking is a critical procedure that lets private equity and venture capital firms identify, connect, and then close deals to their business. This process is also known as deal-sourcing and is essential for these companies to maintain an active pipeline of deals. It can be done via traditional or online methods.
Networking with entrepreneurs and industry experts is the most popular method to discover opportunities for investment. They can provide you with private information regarding the plans of a business owner who wants to sell it. Additionally it is crucial for investment firms to be aware of trends in the industry and changes so they can anticipate what their competitors are doing in the market.
Modern investment banks make use of technology to speed up process of sourcing deals. These include advanced data analytics tools, digital software that is purpose-built, and artificial intelligence. This helps teams know their market, simplify business processes, and transform data into an advantage for the company. Private company intelligence platforms and data services are integral to this, since they allow professionals to identify and research possible investment opportunities using verified, relevant business information.
Some investment banks have an internal deal sourcing team comprised comprising finance professionals, while others have outsourced this task to specialist contractors. These team members are paid on a fee-for- service basis in both cases.