Deal Sourcing

Broadening Your Network – Presented by Intralinks Dealnexus™ in partnership with The Deal

According to a recent survey of M&A professionals, about 40% reported that they are using online deal sourcing to increase deal flow. About 50% of that group reported that they have successfully closed a deal using just technology. Learn more about how you can broaden your network with Deal Sourcing.

By all accounts, deal sourcing is one of the most arduous and labor-intensive parts of the mergers and acquisition process. According to a recent industry study, the average investor in a private company studies over 80 firms before making a single investment. Each investment required the man-hours of three full-time employees.

What are the best ways to increase deal flow? Attending conferences and developing social networks with intermediaries are successful approaches and are employed by many private equity firms. Using an online platform at the start of the process is often an efficient way to maximize the number of potential targets while efficiently using manpower resources.

Scott Budoff, a partner at Briarcliff Manor, N.Y.-based Saw Mill Capital, a private equity (PE) firm that focuses on the middle market, says that in an average year, his firm closely studies 300 to 500 companies to produce just two to three deals.

14 October 2014