Origination
Why Origination?
Once we have built out buy side relationships within our coverage area, we then begin to source targets for our buy side partners. Origination is the primary work of the investment banker in order to keep the pipeline of deals full.
We can source targets for buy side engagements or structure a sell side engagement if appropriate.
Origination Process
Identifying Decision Makers
The Cycle of Origination
Initial Outreach
Preparing for the Pitch
Pitching
Identifying Decision Makers
After pulling a list of target companies within our coverage area consistent with buy side mandates, we need to get an understanding of the ownership structure of the target companies:
Owner vs. Management team
Owner vs. Management team
Obtaining contact information for the appropriate decision makers:
Rocketreach
Salesgenie
FastPeopleSearch or PeopleSearchNow
The Cycle of Origination
In order to properly originate deals, we need to establish sell side relationships by giving market updates to executives, telling them what is going on in the M&A and capital markets. As the relationship is established, you can then pitch them strategic alternatives including selling their company.
Throughout the relationship building process, there will be lunches and dinners to catch up on what the target has been doing and their strategic plans.
Initial Outreach
Email origination strategy
Open to exploring strategic alternatives?
Exploratory Call
Introduction
Explaining coverage & buy side relationships
Timeline for an exit
Exploring strategic alternatives
Target valuation
Preparing for the Pitch
From the initial exploratory call we are going to gather information at a high level in order to prepare a formal presentation exploring their strategic alternatives and what the sell side process would look like. Preparing the pitchbook occurs here as well.
Pitching
Walking the DMs through the pitchbook in order to explore what a sell side process would look like:
1. Timeline
2. Likely buyers
3. M&A landscape
4. Valuation
Michael Herlache MBA
Michael Herlache was the Co-Founder of AltQuest Group, an SMB & lower middle market M&A advisory firm that he started while in business school at Texas A&M University after going through Investment Banking Institute & Wall Street Prep’s training programs. He lives in his home in Scottsdale, Arizona with his wife, Svitlana. Michael has an MBA in finance from Texas A&M University. He is passionate about progressive values like diversity, equity & inclusion as well as helping others find their own unique voice.
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