Bridging the gap between marketing and deal origination

Deal sourcing is the lifeblood of investment banks. Maintaining a consistent pipeline of quality deals is challenging, as today’s investment banking environment is saturated with competition and information overload. With vast amounts of data available, it can be overwhelming to filter applicable information in order to source quality opportunities. The ability to identify, secure, and transact profitable deals is essential to a firm’s success and growth. By developing a more integrated approach between the marketing and deal origination departments, the firm can improve outcomes and efficiency while also improving client relationships.

At the heart of traditional deal sourcing lies networking. Investment banks leverage existing relationships and continually cultivate new ones with company executives, referral partners, and industry contacts. The marketing department is often the front line, responsible for driving awareness, creating touch points with target audiences, and generating volume leads. Marketing uses multiple delivery channels including search engine optimisation (SEO), social media, event sponsorships, and email campaigns with external communications. 

In turn, the deal origination team is largely responsible for funnelling the highest-quality leads into engagements and, ultimately, transactions. While deal origination directly impacts the firm’s ability to generate revenue, both departments play vital roles within the firm. When both functions work together in a cohesive manner, they can share valuable insights, improve targeting strategies, and customise messaging to attract more desired opportunities.

Instead of team members wearing multiple hats, keeping the departments focused on their expertise lets each team hone in on their skillsets to benefit the firm the most. Business development along with integrated communication channels can serve as the conduit between these two departments, bridging the gap between marketing’s wide net and deal origination’s shorter-term sales focus.

The key is relationship building. The business development department plays a pivotal role transitioning digital interactions with prospective clients to personal touch points. They continue to build trust throughout lead qualification, proposal, and each step of the process. Effective business development improves sales conversion rates while maintaining continuity with clients through closing.

Internally, open communication between departments is key to breaking silos, as marketing and deal origination tend to track progress differently. Recurring interactions between departments fosters collaboration and forges an understanding of the other’s challenges, objectives, and tactics. Timely feedback from deal origination on current engagements provides valuable marketing insights such as high potential sectors, geographies, and buyer/ investor trends. It enables the marketing department to produce relevant content to resonate with decision makers, owners, executives, and referral partners. 

Adoption and use of a customer relationship management (CRM) platform across departments is also advantageous. A collaborative CRM platform provides a place to hold centralised data and live updates. Marketing is often viewed as a cost centre and has little visibility to the return on investment (ROI) of various campaigns. Leveraging a CRM system, both departments can view the valuable data needed to fuel business initiatives and work together towards common goals.

There are immense benefits realised by bridging the gap between marketing and deal origination. By creating a cohesive strategy across departments, investment banks can drive growth, optimise their deal sourcing, and offer more customised services to clients. The positive outcomes of integration will excel in importance as market dynamics evolve.

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Lew Thomas, Managing Director at Hyde Park Capital, has 20+ years of financial service experience.