Deal sourcing with a deal origination company?

by a searcher

Mar 07,2023

Does anyone have experience sourcing deal from deal origination company?

It is used by private equity investors, venture capitalists, investment bankers, and other firms. 

The main purpose of deal sourcing is to find various deals to keep an uninterrupted deal flow.

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4 comments

searcher from Polytechnic Ibadan

There are many deals out there and you must have what you are looking for and many times when people are looking at deal origination they are only trying to avoid brokers who many times are the reasons why many deals never closes.

There are no downside with working on a deal but it is important to know that no deal is just too important to take all your time. It's like fishing in the ocean, there are varieties out there don't get stuck with one.

03/24/2023 | like reply | 0 likes

searcher from INSEAD

The question that comes to my mind is what are the benefits and downside of working with a deal sourcing company.

As a traditional or self funded searcher you want to be as close to the ground reality as possible and IMO use deal sourcing company to accelerate or top up the top of your funnel.

Also you need to look at cost of deal sourcing and whether that works for your set up.

One key mistake that has surfaced after I spoke with 30+ searchers, at times they get busy managing middle of the funnel deals and can't focus on keeping the top of the funnel activities going. This can be super detrimental if none of the deals in the pipeline work out and then the searchers had to literally re-start building the deal sourcing engine.

There should be a system that works for you so that you are constantly generating and working on deals and have little time in between. The exact system that would work for you self managed or with the help of a agency really depends on your personal situation

03/09/2023 | like reply | 0 likes

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