WHY HAVING A CENTRALIZED DEAL FLOW IS BETTER THAN PROPRIETARY DEAL FLOW
Why having a centralized deal flow is better than proprietary deal flow?
When you ask the professionals in the private equity industry as far as deal flow goes, they all very quickly point out proprietary deal flow as the answer. They say, if you have a proprietary deal, it is not public so you can deal with the owner directly and not compete with other competing buyers. In reality, if a company is doing well and the owner is ready to exit, they always want to have a competing group of buyers to bid up the price on their business. Also dealing with the owner is not as easy as if you deal with another professional who is aware of M&A industry and its process. In that case, they either hire an investment banker or a business broker. Investment bankers try to run a private targeted auction of 20 to 30 firms vs brokers do a blast marketing to bring as much eyes on their deal as possible. There are thousands of investment bankers and brokers in USA alone. They get their hands on great businesses to sell. Not every broker is a marketing savvy person or have a large marketing and valuation group with the right contacts in the industry. So even though they have a great deal, they are not able to reach the right buyer(diamond in the rough). In this case, aggregators like www.interexo.com become very handy. Interexo, is able to aggregate all available deals into one platform using its unique methods. First it uses its proprietary AI to aggregate deals from over 3300 sources. Second, intermediaries (brokers and investment bankers) are on the site and they are posting their deals and third, it incentivizes all of its users to post deals they are aware of. The great benefits that anyone searching for deals get using platforms like Interexo are: Saving time and money ( the unlimited access to over 3800 deals are only $49 a month with no contract). Staying relevant and aware of all the deals in each industry and sector. Being able to find that diamond in the rough deal.