M&A software

Overview

One of Sommo’s notable successes in 2024 was the development of a software platform for two-sided mergers and acquisitions (M&A) that aims to revolutionize deal sourcing and investment banking in the lower-middle market. This platform connects buyers—such as private equity firms, family offices, and strategic acquirers—with sellers, streamlining the transaction process through AI-powered searches, automated workflows, and enhanced security measures. 

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Sommo transformed the founder's vision into a fully functional minimum viable product (MVP) within just two months. By leveraging our no-code solutions, artificial intelligence, and fintech expertise, we built a secure and scalable M&A management deal marketplace that facilitates seamless transactions while adhering to GDPR, AML, and KYC regulations.

Challenges & Solutions

1. Complex User Experience for M&A software

Challenge:

M&A deals are intricate, requiring a balance between advanced functionality and ease of use. Onboarding needed to be detailed yet frictionless, while secure communication and deal management had to be intuitive.

Solution:

• Streamlined onboarding: We conducted deep market research to optimize the seller and buyer onboarding process, ensuring frictionless data collection while maintaining high-security standards.
• Custom workflows: Designed flexible transaction structures, allowing each deal to be uniquely tailored to user preferences.
• Secure communication: Implemented NDA-protected chats with pre- and post-NDA messaging flows, ensuring confidential deal discussions within a secure M&A data room.

2. AI-Powered Deal Sourcing & Matchmaking

Challenge:

PE firms face challenges in sourcing relevant deals due to the growing competition and a fragmented M&A market. Automating deal recommendations while ensuring high-quality matches was a top priority.

Solution:

• AI-driven deal search: We introduced an AI-powered search system that scans and analyzes extensive data points in seconds to match buyers with the most relevant deals.
• Automated valuation tools: Implemented AI-assisted company valuation tools considering financial, strategic, and operational parameters.
• Risk detection & due diligence: AI-assisted document analysis streamlines owing diligence, helping buyers make informed decisions faster.

3. Data Privacy, Security, & Compliance

Challenge:

M&A transactions involve sensitive financial and legal data. The M&A software must comply with GDPR, CCPA, AML, and KYC regulations while maintaining robust cybersecurity.

Solution:

• End-to-end encryption: Implemented multi-factor authentication (MFA) and data encryption to protect sensitive information.
• Regulatory compliance automation: Integrated automated KYC and AML verification processes for buyers and sellers.
• Fraud prevention measures: AI-driven security checks to prevent phishing, fraud, and unauthorized access.

4. Performance & Scalability

Challenge:

Handling large volumes of confidential documents, financial reports, and high-traffic transactions requires a scalable and efficient system.

Solution:

• Optimized database performance: Implemented indexing, backend workflows, and data structure optimizations to ensure fast query response times.
• Page speed enhancements: Used lazy loading, preloaded key data and minimized unnecessary elements to accelerate page loads.
• Cloud-based scalability: Leveraged Bubble.io's AWS infrastructure with additional load balancing and caching strategies for seamless performance under high traffic.

Key Features Implemented

Buyer Flow

Onboarding for Buyers

Goal: Ensure a seamless registration and verification process for users based on their roles.
Steps: Users choose their goal, fill out the profile, and investment mandate (industry focus, geo preferences, investor type, source of capital, target company TTM Ebitda and revenue, etc).

Browse Listings

Goal: Provide an intuitive marketplace for buyers to find potential deals.
Features:

• Advanced Search & Filters: Buyers can filter deals by industry, revenue, location, EBITDA, etc.
• AI-Powered Deal Search and Recommendations: Based on buyer preferences and past engagement.
• Confidential Listings: Sellers can display teasers before revealing full details.
• Save & Follow Deals: Buyers can bookmark deals for later.

My Deals

Goal: Track interested deals and ongoing negotiations.
Features:

• Dashboard of Active Deals: Overview of deals in progress.
• Engagement Tracking: View deal status, NDA execution, and LOI progress.
• Communication Log: See message history with sellers.

Chat (Secure Buyer-Seller Communication)

Goal: Enable anonymous, NDA-protected communication.
Features:

• Anonymous Pre-NDA Chat: Communicate with sellers before signing an NDA.
• Post-NDA Full Messaging: Unlock detailed discussions after NDA approval.
• Direct Q&A with Sellers: Submit inquiries for more details.
• Attachment Support: Securely send and receive documents.

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Account Settings

Goal: Let buyers manage personal details, preferences, and notifications.
Features:

• Profile Management: Update investor profile and verification details.
• Notification Preferences: Set email alerts for updates.

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Buyer Confirmation Dialogs for Deals

Goal: Ensure buyers take necessary actions before accessing sensitive information.
Features:

• Request Access Confirmation: Buyers confirm interest before viewing detailed deal info.
• NDA Execution Confirmation: Buyers sign the NDA before accessing private documents.
• LOI Submission Prompt: Buyers receive reminders before submitting an LOI.

Seller Flow

Onboarding for Sellers

Goal: Ensure a seamless registration and verification process for users based on their roles.
Steps: Sellers choose their goal, fill out the profile, enter deal overview, key metrics, sign NDA

After that, they can submit their listing or talk to M&A advisors to get help to complete their listings.

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My Listings

Goal: Allow sellers to manage their listed businesses efficiently.
Features:

• Dashboard Overview: See all active, pending, or closed listings.
• Listing Performance Metrics: Track buyer interest and inquiries.
• Edit & Update Listings: Modify business details or mark as sold.

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Evaluate Buyers

Goal: Give sellers control over which buyers can access their confidential data.
Features:

• Approve Buyer Requests: Sellers review buyer profiles before granting full access.
• Track NDA Signatures: View which buyers have signed NDAs.
• Blacklist Unqualified Buyers: Restrict access to specific users.

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Chat (Secure Seller-Buyer Communication)

Goal: Enable structured and secure conversations with buyers.

Features:

• Approve Chat Requests: Sellers decide which buyers can message them.
• Pre-NDA Anonymous Messaging: Buyers can ask initial questions before NDA execution.
• Post-NDA Full Messaging: Unlock detailed discussions after NDA approval.
• Attachment Support: Send pitch decks, financials, and contracts securely.

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Seller NDA Configuration

Goal: Ensure sellers can set up NDAs for their listings.
Features:

• Pre-Built NDA Templates: Use standard or customized NDAs.
• Custom NDA Terms: Sellers can edit terms based on legal preferences.
• Automated NDA Signing: Buyers sign directly within the M&A software.
• Track Signed NDAs: View and manage all executed NDAs.

Account Settings

Goal: Let the seller manage personal details, preferences, and notifications.
Features:

• Profile Management: Update investor profile and verification details.
• Notification Preferences: Set email alerts for updates.

Additional Features for Both Buyers & Sellers

Mutual NDA Execution – Secure bilateral NDA process integrated into deal workflow.
Data Room Access – Buyers gain access to structured business documents.
LOI Submission & Review – Buyers create, send, and track LOIs digitally.
Deal Progress Tracking – Real-time updates on negotiation status.

Performance Optimization

Building an M&A software involves managing complex transactions, handling large datasets, and ensuring the secure exchange of confidential documents. Optimizing the M&A software was a top priority to support scalability, speed, and security.

By leveraging Bubble.io’s built-in AWS infrastructure and hosting, we addressed many security and performance concerns from the outset. However, to further enhance efficiency, we implemented a comprehensive optimization strategy across key areas:

1. Database Optimization for Faster Queries

• Structured data to minimize processing time.
• Limited the number of loaded fields per query to improve speed.
• Index frequently used fields for faster retrieval.
• Utilized backend workflows for bulk operations to reduce frontend load.

2. Page Load Speed Optimization

• Implemented lazy loading for repeating groups, ensuring only necessary data loads.
• Minimized page elements to reduce rendering time.
• Preloaded key data using custom states for smoother user interactions.
• Used floating and reusable elements to enhance responsiveness and speed.

3. Secure & Efficient File Handling (Virtual Data Room Optimization)

• Integrated external storage solutions for managing large files efficiently.
• Optimized file upload processes to prevent system overload.
• Implemented signed URLs to restrict file access and enhance security.

4. Workflow & API Performance Optimization

• Utilized API workflows for heavy tasks to reduce processing time.
• Minimized the number of workflow steps to streamline execution.
• Replaced polling-based API calls with webhooks, improving system responsiveness.

5. Security Optimization Without Performance Trade-Offs

• Enforced strict privacy rules to control data access.
• Temporary access tokens were used for secure API interactions.
• Implemented rate limiting to prevent server overload.
• Integrated Cloudflare and Web Application Firewall (WAF) for DDoS protection and enhanced security.

6. Load Balancing & Scalability

• Upgraded to Bubble’s Dedicated Plan to handle high-traffic loads.
• Integrated external databases for improved data management at scale.
• Implemented caching mechanisms for frequently accessed data to reduce load times.

7. Performance Monitoring & Continuous Optimization

• Regularly analyzed Bubble’s performance metrics to detect bottlenecks.
• Used Google Lighthouse and GTmetrix to measure and enhance front-end loading speed.
• Conducted routine database optimizations to eliminate unnecessary modifications and improve efficiency.

These optimizations ensured that the M&A software remained fast, secure, and scalable, providing users a seamless experience while handling complex M&A transactions.

Results & Impact

🚀 Successful MVP launch in 2 months
📈 $3.2K MRR achieved within the first 6 months
💼 Growing user base, with ongoing expansion plans
🛠 We are currently developing version 2.0 with more advanced features

By combining AI, automation, and secure deal execution workflows, the M&A software has redefined lower-middle-market M&A deal sourcing. The platform continues to evolve, with Sommo leading ongoing feature expansion and optimization.