Sourcing deals as an analyst?
Hey all, just started a few months ago as an analyst in an infrastructure group and wanted to get your opinion on this interesting situation I'm in..
I was scrolling through LinkedIn yesterday and this random connection I follow posted that He's looking for an infrastructure deal to purchase in the $100MM-$200MM range, exactly what my MM IB group does. I was excited and thought dang this sourcing thing is easy and was about to email an associate in our group when I thought could I be making a fool of myself?
I looked the guy up on linkedin and asked him who he's backed by. He's been 'CEO' of his company (only person) for a few years and backed by some 'private investors' looking to capitalize on this 'downturn.'
Is this guy legit? Even if he isn't, would it hurt to tell my associate / VP and send him a few teasers? Just thought I'd run it by some monkeys on here before running it by some monkeys I know in real life. Thanks!
Not ridiculous. Get some more background info before you say anything. Then you should pick and choose people who you know for sure will give you credit for finding this transaction if it goes somewhere.
Example: Send an email to the MD and CC VP and associate. Say that you found a potential transaction and wanted to run it by the team. This puts it in writing that you foudn it.
agree, do your due diligence first before bringing it up
The likely issue with this is that the potential client or sponsor is not an existing client of your bank. That’s been the typical problem i’ve come across. For most banks, its not easy to onboard clients if there are no cross selling opportunities.
Folks who post opportunities like this on social media probably don’t have a strong banking group.
Agree that you should do your due diligence and draw up the notable facts to your MD (cc other relevant people). At the very least, it shows you’re attentive.
sounds good, thanks for the reply. yeah I’m not feeling to fond of emailing my VP / associate anymore because I don’t want to waste their time with some random dude on social media trying to flex
Typically you don't refer him unless he meets 1 of the criteria below 1) The person/his company is recognizable in the industry 2) He has mandated similar financial advisors in the past Plus he is a close contact with you/your family and you know he can make the call
There could be a few reasons why your boss is not doing business with him in the first place 1) Not a recognizable name / too small to onboard / not a legit player 2) Conflict with existing clients 3) Chances of closing deal for him is low / he cannot afford the fees
Usually if he is an IB client material, he would have received endless number of pitches / teasers instead of looking for an advisor online (either through his IB network or referral to IB by private bankers)
I won't contact MD directly unless you know that guy in person and you are sure he is legit. Best approach would be speaking to 2 persons (maybe associate + VP) at the same time during coffee. See how they react and they will decide the next step. They know more about the industry so they can do a sanity check.
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