Since we first launched Dealwise, we’ve hosted almost 400 conversations between buyers and sellers. Of those, one startup was acquired through Dealwise, and another two are currently under offer.

Through this process, we learned that while M&A is an exciting space, it’s not the best space for software or AI to disrupt. Too much of the transaction hinges on the work of managing expectations and various stakeholders, which is the kind of work best left to humans.

That’s why we’re launching a new platform to solve one the biggest pain point we’ve personally observed on our deals: getting financing. SBA-backed loans are the most common way for searchers to finance deals under $10M, yet the process of getting a SBA loan to acquire a company hasn’t changed in decades.

Finding the right lender is like finding a needle in a haystack

There are over 2000 active SBA lenders in the USA. However due to banking industry regulations, few actively market themselves, and so the top institutions like Huntington and Live Oak Bank are the ones everyone knows about. The top loan brokers work with a few dozen borrowers at most, while missing the 100+ new banks that get started each year. However it’s usually these smaller and newer banks that are the most aggressive and offer the best terms.

SBA loans take forever to approve

It takes anywhere from 45 to 60+ days to get an SBA loan approved, longer than any other type of commercial loan. Given that the exclusivity window on most LOIs is only 90 days, this doesn’t leave much room for error and can be a big source of frustration for sellers, and even kill a deal.

Applying for a SBA loan is incredibly time consuming

Each lender has a different application process. Some ask you to fill in an online form, others do everything over email. Some ask for your entire work history and a CIM, others are happy to work off just tax returns and a LinkedIn profile. That’s why most buyers only talk to a handful of lenders, they just don’t have dozens of hours to spend on filling out forms and rehashing the same information in different formats.

That’s why we’re launching a new product under the Dealwise brand called Beacon - a loan marketplace for acquisition entrepreneurs. Our goal is to automate the process of matching you to the best lender for your deal, period, not just the best lender we happen to be pals with. We accelerate the SBA loan process and save you time. You can focus on getting to know the business instead of worrying about financing.

We’re still in closed beta, so we have a favor to ask: If you need to close SBA financing in the next 30 days, we’d love to help you find the right lender using the Beacon platform. There’s no cost to you, and all we need are documents you would need to prepare anyways to get a loan.

Just reply to this emails with “interested” and we’ll set up a time to onboard you onto the platform!

Best,
Jason Fan
CEO, Dealwise

P.S. The Dealwise Marketplace is not going anywhere for now, though there will be fewer new listings as we are no longer onboarding new sellers.