deal flow

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What is the right amount of deal flow?

Often times, individuals succumb to the notion of “more is better.” However, regarding deal flow, this is not always the case.

Unfortunately, there is no universal standard or golden rule for how much deal flow a firm should have. It is entirely contingent upon a business’s needs and strategy.

Ideally, you want to have enough M&A deal flow to sustain business needs while also generating equity and revenue.

The aim here is to look at a combination of quantity and quality.

In the beginning, meeting with multiple opportunities may be beneficial to gain experience and learn what makes a deal attractive.

However, it may become unwise to focus solely on sourcing a plethora of deals for merely numbers sake.

This will not pay off in the long run if they are all a bust. You want to meet with enough people to find a handful of worthy opportunities to investigate further while remaining attentive to value.

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Sources of Deal Flow

There are multiple sources that firms utilize to generate deal flow.

Referrals

These may come from other investors, portfolio companies, and service providers such as bankers or lawyers. Referrals especially come in handy when you are just starting out and do not know what exactly to look for.

Staying up-to-date

Do your research on trends, new technologies, and products. If you see something that is of interest, reach out. It requires a little more work than referrals, but it’s a great way to get your foot in the door. You may even catch a new product or idea before they’re looking for funding.

Events

There are plenty of different events that showcase startups and other investment opportunities. These include pitch nights or demo days at startup accelerators, venture fairs, or conferences. Here, you are able to not only directly meet and engage with individuals and their ideas, but also witness demonstrations.

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Frequently asked questions

Everything you need to know about the product and billing.

What do merger and acquisition services companies do?

Many companies identify targets or partners and execute merger and acquisition transactions. Others focus entirely on developing supportive financing for M&A transactions or building a global network of connections and brokering deals.

At The CEO’s Right Hand, we partner with you through the entire process, serving as your strategic advisor. We identify and address issues, communicate with internal and external stakeholders, and manage the transaction’s business, diligence, and financial aspects.

What is the merger and acquisition process?

Before engaging in a merger and acquisition, taking stock of your company’s strengths and weaknesses is vital. What would make you a good acquisition target or potential partner for another company? And what steps do you need to take to make your business more attractive and prepare for a prospective corporate transaction? For example, it might be necessary to raise capital before you can pursue a merger and acquisition.

Once you believe you are ready, including identifying clear objectives and pulling together the necessary plans and diligence materials, the next step is to work with an advisory to develop a list of targets and arrange meetings.

Finally, a wide range of tasks must occur when you find a match for your company. Mergers and acquisitions involve negotiations, legal arrangements, restructuring, and the tactical activities involved in merging operations. It is a complex process that requires significant expertise. Therefore, previous experience is invaluable.

How much do merger and acquisition services cost?

Merger and acquisition fees can vary greatly depending on your level of readiness and the type of arrangement you wish to pursue. At The CEO’s Right Hand, we typically assign a fractional CFO to this task that has experience in your industry, specializes in mergers and acquisitions, and has previously led organizations through the process. Such specialized knowledge typically comes at a premium but makes the process much more manageable. We welcome you to submit an inquiry to discuss whether we might be a fit for your needs.

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Deal Flow