sourcing and due dilligence

for anyone who is currently an analyst, associate, etc, i know most of the job requires deal sourcing and due dillgience. what does all of this exactly mean? if someone works for a healthcare/biotech pe firm at the analyst/associate position, is your research vastly different (prob following clinical phases etc) than other industries?

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Simply put, PE sourcing involves generating a list of companies based on various criteria (revenues/EBITDA/industry, etc.) and cold calling the CEO/owner to determine if they might be interested in selling the company. If they are, you would conduct due diligence on both the firm and the marketplace in general to determine whether to pursue the deal.

 

hey sojourner thanks for the input. so when you source and generate a list of companies, its an analyst that controls who he/she picks to call? thus the pe firm's MD's dont already have recommendations that they give to you? i only ask because it seems surprising that a 23 or 24 year old can just sort a list according to a certain metric and just randomly cold call companies. i thought there would be more structure and more input from upper management as to who they want you to target and follow up on

 

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