Direct Deal Sourcing Team

All private equity firms have a bottleneck. Deals. Why every private equity firm should have a direct deal sourcing team and why it makes sense to outsource this activity – that’s what today’s article is about.

What distinguishes a direct deal sourcing team from a research desk?

In a nutshell: the bottom line. A Research Desk researches the market for opportunities for inorganic growth and delivers those research results to the client.
The Direct Deal Sourcing Team delivers concrete deal opportunities. It provides an extended service offering. Where the Research Desk leaves off, the Direct Deal Sourcing Team picks up. It contacts decision makers and organizes initial discussions about a potential transaction.

The private equity firm receives high quality targets that are “warm”. No more unpopular cold calls are necessary, which significantly relieves internal resources.

Why hire a direct deal sourcing team externally?

Hiring a direct deal sourcing team externally saves tremendous costs. Our Direct Deal Sourcing Team works on the basis of such a low monthly fee that not even 2 people can be permanently employed from it. We are able to do without a success commission, because we have the claim to supply our customers constantly and monthly with very good, warm targets. A success fee would unnecessarily increase the costs for our customers.

Specialists! Specialists! Specialists!

In addition, an external service provider is able to provide specialists in different areas. For example, it is very cost-intensive for a small private equity company to maintain special know-how in technology or health care in the long term and to keep it up to date. It is better to buy in externally when it is needed instead of having to bear high fixed costs every month.

The pressure to make a deal is high enough, there is no need to add cost pressure 😉 .

Talk to our experts about how you can make the most of our direct deal sourcing team.

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