Investment bank analysts need to effectively analyze large databases of companies to generate quality deal flow. AI tools can quickly identify potential targets for investment banking deals and increase research efficiency. AI-powered deal sourcing tools will automate tedious manual processes and provide quick access to valuable data that can help guide acquisition decisions.

What is deal sourcing?

Deal sourcing, or deal origination, is a strategic approach to identify prospective investment opportunities used by investment banks, private equity and venture capital firms. It involves market research to find and evaluate opportunities that are in line with their investment criteria.

Deal sourcing platform benefits

AI-powered deal sourcing platforms provide valuable insights for buy-side and sell-side bankers. These software solution use sophisticated algorithms to analyze large datasets and help generate deal flow opportunities. AI deal origination services can quickly identify companies that are most likely to be a good fit as potential targets or buyers and then enable banks to evaluate those leads more efficiently. 

AI-powered deal sourcing tools can:

  • Eliminate manual data analysis.
  • Help identify hidden value opportunities that may have been missed by other methods.
  • Increase accuracy in identifying key features of potential investments.

The top AI tools for deal sourcing are powerful since they significantly reduce desktop research hours. AI-powered deal sourcing tools quickly identify deals that meet the buy-side investor's criteria. Thus, they allow a focus on other crucial parts of the M&A process, such as due diligence and negotiations. Additionally, these tools help streamline the buying process by providing timely data and insights into potential investments.

In addition to providing deal origination, they combine key metrics such as company size, ownership structure, geographical focus, and similar companies within the same market. Great AI tools uncover potential investments that are not actively being traded, as well as those with strong financials or attractive asset characteristics.

Optimizing deal sourcing with AI-powered software: Inven

Inven revolutionizes deal sourcing by reducing the time M&A professionals need to invest in manual desktop research and Googling. Inven uses AI to analyze millions of websites, registry data, and social media, and combines all data points under one roof. This makes it easy for M&A professionals to search for companies and source deals within any specific niche.

With Inven, you gain access to company owner contact information and financial data significantly more efficiently. Inven provides verified company contact data on 430M+ professionals and financial information from over 43M+ legal entities, including data such as revenue, EBIT, and balance sheet data.

Benefits of using AI deal sourcing software:

  • Smart AI Deal Sourcing: Analysts no longer need to manually scout multiple sources, as Inven provides information in one place. This ensures especially the access to lower middle market deals that might be missed otherwise.
  • Search based on Company Ownership information: Input search parameters and filters to tailor search criteria precisely. Find family-owned companies or PE-backed enterprises, for example.
  • Access to Company Contact Data: Access to contact information of companies ensures more deal flow. For example, Inven helps analysts find acquisition targets in HVAC or MSP industries, with the information about their owners, their phone number and email.
  • Similar Company Recommendations: By harnessing advanced AI algorithms and the latest NLP technologies, Inven has the capability to identify companies that share similarities. This enables Inven to locate companies that engage in similar activities or offer comparable products -and services.

The benefits of AI in investment banking deal sourcing are clear. AI helps uncover valuable investment opportunities and build a list of prospective deals more effectively.

Want to know more?