Efficient and better deal origination

2 min read

Efficient and better deal origination

The M&A market is very dynamic. Learn how to adapt your strategy to include new data tools for deal sourcing to make sure you don't miss out!

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The top 5 advantages of using data tools  

The M&A market is very dynamic and reactive to global business conditions. In 2021, the global M&A volume grew dramatically by 58% to $5 trillion, the largest yearly percentage increase and volume over the last decade (Morgan Stanley). To stay on top in the current market, you have to be constantly aware and quick to act. You have to secure your deal before others step in and steal it. If you spend too much time on tasks that could have been automated, you might be the last to show up. Adapting your strategy to include new deal origination tools for deal sourcing should be at the top of your priorities. Do you want to make sure you do not miss out?

Why it's so important to use deal origination tools: Graph of global announced M&A volume
Source: Refinitiv as of Jan. 3, 2022.
Note: Includes globally announced transactions, each with an aggregate value of $100MM or more. Includes transactions with estimated values. Excludes terminated transactions. Future terminations of pending transactions will reduce the totals shown

#1: Time-saving

Deal origination is a time-consuming process. Identifying new investment opportunities requires one to manually go through an endless amount of data, daily or to build and maintain an extensive personal network. Both ways require hours of work for those who source and analyze new companies. On average, 80% of juniors’ and analysts’ time is spent on such manual tasks (Refinitiv). However, with the help of integrated deal origination tools, this can be reduced to merely a few clicks. This way a lead list can be created within seconds. Why spend hours sourcing new opportunities when working with new technologies can free up time to focus on high-value tasks?

#2: Find unique opportunities

By using data, the identification of target companies can be exponentially expanded. Companies you might not have discovered via your personal contacts are now within reach. You will not only be able to find more unique target companies in less time but new high-potential targets are added each day, which increases the likelihood for you to spot new trends and your next big investment opportunity. Furthermore, delphai allows you to expand across national borders as it includes companies globally. The platform keeps you up to date regarding company and sector development with notifications on the latest news from across the globe. Thereby, you will be able to find and track new companies that contribute to your company’s success.

#3: Save cost

Companies frequently have an in-house M&A team dedicated to all M&A processes ranging from deal origination to divestitures. Data tools are usually integrated by paying a monthly or yearly subscription. The price for using such platforms is commonly lower than having a team solely for origination purposes and provides an exponential boost in efficiency.

#4: From data to market knowledge

A single data point does not say a lot, but meaning can be derived from the relationships between millions of different data points. Only then, you can understand the entire industry landscape and trends. delphai achieves this by presenting a wide variety of different firmographic data including revenue data, news sources, and relationship data. Worth mentioning is that the feature, delphai Peers, quickly and easily finds companies similar to the ones of interest. It is perfect for those who want to find comparable companies for measuring metrics and gauging market performance, or for investors who want to find potential new investments.

#5: Easy to use

More data does not mean better data. Raw data needs to be structured and filtered first before a decision can be made with it. delphai allows you to filter companies on various levels making your life easier. It significantly contributes to your efficiency and effectiveness when constructing a target list. Why go through various sources when you can discover companies that fit your requirements in just a few clicks?

Want to experience the benefits yourself? Book your demo here.