Deal Lead (Finance) – Definition

Cite this article as:"Deal Lead (Finance) – Definition," in The Business Professor, updated November 23, 2018, last accessed June 4, 2020, https://thebusinessprofessor.com/lesson/deal-lead-finance-defined/.

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Deal Lead (Finance) Definition

Typically, during the investment round of a startup an individual investor or an investing firm assumes the primary responsibility of collecting the funds. This firm or the individual is known as the deal lead.

A Little More on What is Deal Lead

This organization or the individual leads the process of investment collection. They are responsible for selecting the company and negotiating the terms and condition of the investment. They make the largest investment of that round and maintain liaison between the company and other investors.

References for Deal Lead

Academic Research on Deal Lead

Offshoring: Big deal, or business as usual?, Blinder, A. S. (2009). Offshoring of American jobs: what response from US economic policy, 19-60. This essay discusses whether American companies sending service jobs overseas is truly problematic, or simply a benign expansion of international trade.

Can business afford to ignore social responsibilities?, Davis, K. (1960). California management review2(3), 70-76. This article considers whether “businessmen” fulfill their social responsibility simply by generating economic activity, or if they must also develop certain human values through work.

Why business models matter, Magretta, J. (2002). Why business models matter. In the wake of the dot com bubble, this paper examines the concept of a business model. The author describes a business model as a system, and contrasts it with a business strategy, which is a response to the challenge of competition.

Converting social problems into business opportunities: The new meaning of corporate social responsibility, Drucker, P. F. (1984). California Management Review (pre-1986)26(000002), 53. This paper explains that in order to be considered “socially responsible,” companies must make a business out of solving social problems.

Negotiating the spirit of the deal, Fortgang, R. S., Lax, D. A., & Sebenius, J. K. (2003). Harvard Business Review81(2), 66-79. This paper explains the importance of the social contract that is implied in any deal between two businesses. The authors argue that contract negotiators should explicitly discuss the practical realities and implications of the deal in order to avoid misunderstandings and promote a productive working relationship.

Biotechnology M&A insight: Deals and strategies, Pavlou, A. K. (2003). Journal of Commercial Biotechnology10(1), 85-91. This paper analyzes 82 mergers and acquisitions (M&A) among biotech companies. The authors find that these M&A help companies grow and survive economic downturns.

The Economics of Deal Risk: Allocating Risk through Mac Clauses in Business Combination, Miller, R. T. (2008). Wm. & Mary L. Rev.50, 2007. MAC clauses are designed to protect companies from loss when their counterpart in a deal loses value. This study examines the MAC clauses in over 350 mergers and acquisitions.

Market networks and corporate behavior, Baker, W. E. (1990). American journal of sociology96(3), 589-625. This article looks at the relationships between companies and their banks. It classifies those relationships, as long-term relationship interfaces, short-term transaction interfaces, and hybrids of the two. The article finds that strong relationships between banks and companies still exist, and that most of those relationships are hybrids.

Understanding business cycles, Lucas, R. E. (1995). In Essential readings in economics (pp. 306-327). Palgrave, London. This paper considers different theories about the cycle of boom and bust in capitalist economies.

Customized online promotions: Moderating effect of promotion type on deal value, perceived fairness, and purchase intent., Chatterjee, P., & McGinnis, J. (2010). Journal of applied business research26(4), 13. This paper examines the effects of online retail promotions on consumer attitudes and behaviors. Specifically, it compares the effects of individually targeted promotions with universal promotions offered to all consumers. The paper finds that targeted promotions are far more effective in motivating consumers to purchase.

How benefits management helps Balanced Scorecard to deal with business dynamic environments, Gomes, J., & Romão, M. (2013). Tourism & Management Studies9(1), 129-138. The Balanced Scoredcard (BSC) is a tool used by businesses to manage the implementation of a business strategy. This paper argues that the BSC is not equipped to handle a more competitive and dynamic market. The authors suggest that augmenting the BSC with a benefits management approach can strengthen the implementation of a strategy.

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