The struggle to raise equity financing
We live in an era in which Mergers and Acquisitions (M&As) have become a popular growth strategy for small businesses because of the enhanced competition, breaking of trade barriers, free flow of capital across countries and globalisation. On average acquired startups have between 50 and 100 employees, and the majority (57%) are acquired between 5 to 15 years, raising between $10 and $100M. Low and middle market corporate transactions processes are expensive, slow, prolonged in time and without guarantees of success, thus inefficient. Small Business face these processes for their first-time having lack of visibility, transparency and guidance and reaching only a limited number of potential buyers. Advisors, such as consultancies either do not support small deals because of high ratio cost/benefit or charge significant retainer fees to the small businesses.
The future is the crowd: creating a revolution in corporate transactions
FEN has developed the first NAAS democratizing M&A management platform. It will deliver Growth, Equity and Commercial Alliances. It is a disruptive platform solution to make low-to-mid market (between $1M and $100M) corporate transactions, such as sales of companies or its assets, mergers, consolidations or other capital reorganizations more transparent and efficient. Our aim is to integrate all stakeholders of the M&A processes in an Artificial Intelligent platform designed to give advice based on proprietary algorithms that will learn each investor’s decision-making process, matching them with suitable companies. The platform is currently in production environment and being tested by selected early adopters. Our results have shown that we can cut average deal lead time by over 50% to under 6 months, and reduce failed transactions from current 80% to under 30%.