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What was once a tedious procedure — such as calling the theater to find out the times of shows or dropping off film rolls to be developed has been made much simpler due to the advancement of technology. We couldn’t change channels from our sofa in the absence of a remote control. Photos would take weeks to reach our mailboxes using dial-up internet. This is also true for investment banking, where the use of modern technology can help companies make more deals quicker and more efficiently.
Deal creation is an important part of the work done by investment banks as well as venture capital firms, private equity firms, and other firms looking for investment opportunities. Although it’s slow and time-consuming, it’s critical to ensuring that these investment firms have a pipeline full of potential deals.
Traditional deal origination involves networking with business owners who are interested in purchasing or selling a business. This is usually done via direct mailers or by taking part in M&A networks that allow investment bankers to connect with others who are seeking opportunities.
In recent times, investment companies have started to use technology platforms to automate a portion of the tasks associated with deal origination. These online platforms can identify opportunities and match them to the sell-side as well as the buy-side, making it easier for businesses to find investments that are suitable. These platforms can also help investment bankers save time by sifting and filtering options in accordance with specific criteria. Increasingly, these technology solutions are being integrated with specific experts and teams, as well as collaboration with other investment firms to improve efficiency.