“Playing to Your Strengths: Strategic Deal Sourcing” explains the importance of effectively sourcing high quality deals in order to maximize return potential. While quality of fit is extremely important, returns are amplified when combined with securing deal flow in a proprietary manner (i.e. deals with lower levels of competition).
In order to find investment opportunities that match these criteria, proactive ownership of the deal sourcing and structuring process is crucial:
- Focus on opportunities that institutional investors (i.e. private equity firms) cannot pursue—either due to smaller deal size or unique terms which they are structurally unable to offer, and leverage on your more personal and flexible nature
- Establish your investor “brand” across a strategic network of relationship builders that provide the opportunity for you to review a deal before other potential acquirers, a process that requires a significant amount of time, money, and resource allocation.
