Dealwise helps startups with $1M-$10M in annual revenues get acquired. We run a confidential process to get you offers from strategic & financial buyers in half the time of traditional M&A advisors and without locking you into multi-year exclusivity contracts.
Hey Product Hunt! We're Ayan and Jason, the cofounders of Dealwise. We're excited to launch Dealwise, the AI-powered M&A advisor for startups 🚀
We built Dealwise to tackle a problem we saw one of our YC batchmates experience: there just isn't a good way for founders of software startups with $1m to $10m in revenue to find an exit. Investment banks won't work with businesses under $10m in revenue. Marketplaces like Flippa and Acquire are great for selling businesses under $1m, but not so great for maximizing your exit. Strategic buyers aren't sitting on a marketplace all day.
Dealwise helps you sell your business from start to finish -- identifying and reaching out to financial and strategic buyers, negotiation, loan pre-qualification, and escrow. We use AI to identify more relevant buyers than typical M&A advisors, making sure we leave no stone unturned. In just three months, we have one deal closed and two more under offer.
Happy to answer any questions in the comments.
@ayan_bandyopadhyay
Hey, Ayan! My team and I really could've used something like this back when we were in YC...
What kinds of multiples are you guys seeing for SaaS right now?
Hi @mkrupprecht , that's the golden question!
For "lifestyle" SaaS aka one that's generating cash flow and growing 0-50% per year, financial buyers are paying 1-5x on ARR or 2-7x on EBITDA. It tends to cluster on the low to medium end of the ranges, we rarely see multiples on the high end.
I know those ranges are still broad but it's difficult to be more specific without knowing the financial and operational details of a company. Something as innocuous as where its employees live can add or subtract a turn from the multiple.
For growth SaaS, it varies wildly as strategics are often the only viable type of buyer and they generally don't price based on multiples.
@ayan_bandyopadhyay
> Marketplaces like Flippa and Acquire are great for selling businesses under $1m, but not so great for maximizing your exit.
How are you actually different from Flippa and Acquire?
Hi Ayan and Jason, congratulations on launching Dealwise! It's great to see innovative solutions addressing the gap for startups looking to exit. The AI component seems like a game-changer for efficiency and reach. Out of curiosity, how does Dealwise ensure confidentiality throughout this intricate process? Wishing you success and many more deals closed!
@alex_dulub When working with Dealwise, your company remains anonymous until you decide to engage with a buyer. We handle most of the outreach, thereby eliminating the risk of employees discovering the process or diminishing leverage in future negotiations.
Wow Jason! It's amazing. M&A can be really hard for makers who only love/enjoy to make. You're helping on a key stage for all of those. Hats off my friend. Keep doing on that way!
Hey guys, really great product you have for smaller startups! I noticed that you charge both a retainer fee and a success fee. Why do you charge a retainer fee? Shouldn’t you only charge a success fee?
@bradley_justice There are two reasons for the retainer fee. First, it tends to filter out founders who aren’t seriously considering being acquired. Same reason why it’s a good idea to charge upfront for a SaaS product, it helps you focus on your most serious customers. Second, it helps cover our costs as we run an anonymous sales process for your business.
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This is really interesting and I can see it helps so many small medium tech businesses. The deal market is usually in-transparent and owners who sell for the first time lacks legal experience. Having a tool like this helps them fill the gap in information and not get disadvantage at the deal table.
What are some of the interesting insights you got from actually helping your client go through deals? Curious to learn your observations.
Thanks for the support @heartbyte !
We're learning things all the time.
When fundraising, it's generally frowned upon to intentionally bid up your valuation by shopping a term sheet around.
For some reason, lots of founders who have fundraised don't realize the same applies for M&A and want to shop offers around to bid the price higher.
But this can backfire. Since LOIs are non-binding some buyers treat it as a free option on acquiring the company. There's no cost to them to put in a high offer, then negotiate it down during diligence or pull out altogether.
Hi, I spent some time at VC myself and I can totally relate to the exit problem you are trying to solve! Does Dealwise act like an investment banker who takes % commission based on the deals closed or more like a marketplace platform for matching demands and supplies ?
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