Platforms like Axial, an M&A marketplace from ravi teja's blog

Originators at investment banks will put together their buyer list using sources such as Pitchbook, Capital IQ, and Axial. They often make recommendations to PE firms with existing portfolio companies that are active in the same space as the companies PE firms are targeting to buy.

This is the most conventional process relying on an investment firms’ historic network and reputation within the investor community. Firms bid against each other with their success on deals reliant on access to specific industry or company information.

Traditional approaches are getting much less effective with time. Mainly because private companies with >$15M of revenues and $2m EBIT or adjusted EBITDA are regularly contacted by PE firms and strategic buyers. Furthermore, it’s getting a lot easier for company owners to find out more about different buyers and capital sources through search engines and social networks like LinkedIn.

Online deal origination

Platforms like Axial, an M&A marketplace, and other sites cost much less than travelling to physically attend seminars or conferences around the world. Investors can research different strategic buyers or private investment firms online through Google, and sometimes through free directories.

Online deal origination is the most modern technique using technology to replace more established methods. Various fintech firms provide deal sourcing platforms which investment firms and originators can use to generate new leads and reach a bigger network. Deal origination platforms include Dealsuite, Dealnexus, Navatar, and SourceScrub.

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