Every year more than a million new business applications are filed in the U.S. Digital technologies. Pop culture phenomena and rising demands have made it possible for anyone to blow up in the market. For venture capitalists, it is an exciting opportunity to find amazing deals in the market. Proprietary deals are considered to be the best. In this article, we will try to understand proprietary deals, their benefits, sourcing these deals, and the role of a strategic advisory firm.

What are proprietary deals?

If a single company gets a chance to invest in a company before any other dealmaker reaches out to the company, it is called a proprietary deal for the investor. These kinds of deals are highly regarded in the world of private equity and they usually happen when the investor has a personal connection with the company or is facilitated by a strategic advisor.

Benefits of proprietary deals

The biggest benefit of sourcing proprietary deals is the lack of competition. Strictly speaking, these deals happen ‘under the radar’ and go unnoticed until the company blows up in the market. Investors often receive a much better price from this kind of deal than the market expectation in the future. Because of the short cycle of finalizing the deal, the investors aren’t able to learn a lot about the company, its prospects, and the broad action format. In this case, a strategic advisory consulting firm can be helpful.

Best practices for proprietary deal sourcing

• Direct source opportunities: Find out methods to direct source opportunities if you can. The companies that match your investment criteria are the ones that are easy to strike proprietary goals with.
• Use data signals: Capital advisory firms provide key data signals that can help you find the right companies that align with your investment criteria. You can use these data signals to know about employee growth, website rankings, ownership type, and much more.
• Develop connections: Developing connections with venture capitalists, investment bankers, and consultants is a great way to find out potential deals. Once you develop these connections, you will be able to get data signals from different sources.

About Bainbridge:

Bainbridge is a recognized capital advisory firm that has been in the market since 1975. It has a team of capital advisors, MIT professors, corporate consultants, investment bankers, and attorneys to provide the best deals to its clients. Private equity advisors available at Bainbridge are proficient in providing high-quality proprietary deals in the market.

To know more about capital advisory services, visit https://bainbridge.com/

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