Closing
AI for Business Brokering: Week 8 – Closing
Welcome to Week 8 of Tupelo's series on how AI is revolutionizing business brokering. Today, we're diving into the final stage — closing the deal. For business brokers and M&A advisors, leveraging AI and technology during this last step can improve efficiency, reduce friction, and ensure a seamless transfer.
Goal: Showcase AI tools that empower business brokers to manage closing processes with precision, while also ensuring smooth post-deal transitions.
Below are 12 AI-driven tools designed to help you bring deals across the finish line:
1. Tupelo
Tupelo is an all-in-one platform built for business brokers. It handles CRM, NDA automation, data rooms, email marketing, and even uses AI to create CIMs. One key feature is the Tupelo’s data room. Brokers will create document request lists and the Tupelo system will automatically follow up with the respected parties to upload documents. Tupelo’s data room is a holistic solution that is helping hundreds of brokers, and thousands of business owners, buyers, and lenders seamlessly.
Pricing:
$100 per user/month for the first five users (minimum 2 users)
$50 per user per month for user six and beyond
Key features:
- Tupelo’s Data Room
- Task Manager
Considerations:
- Tupelo is only accessible for CRM users
2. Lumos Data
Lumos Data provides actionable insights by aggregating private company information like financial performance, ownership details, and industry trends. Business brokers can use this data for accurate valuations, identifying market trends, and targeting businesses likely to sell. It also supports due diligence by offering a clear view of a company’s financial health and liabilities. Overall, Lumos Data helps brokers make informed decisions and improve transaction outcomes.
Pricing:
TBD
Key features:
- Analyze public data to determine the bankability of a deal
- Get key loan history insights on specific industry verticals, locations, and transaction sizes
Considerations:
- Lumos data is not widely used within the broker community
3. AnyLogic or Simio
AnyLogic or Simio can simulate business operations using historical data and the previous owner's decision-making process. These tools allow the new owner to experience different scenarios and learn how to manage specific challenges. By simulating real-world conditions (e.g., customer demand fluctuations, supply chain issues), they help the new owner prepare for potential challenges and learn from the expertise of the previous owner.
Pricing:
Free +
Key features:
- Forecasting to understand the financial impact of specific scenarios
Considerations:
- Requires technical training and data preparation to use effectively.
4. Kira
Kira is an AI legal tool used to manage post-closing legal compliance checks by analyzing legal documents and ensuring they meet regulatory requirements. Kira’s AI automates the process of identifying compliance issues in contracts and ownership documents, reducing legal risk and ensuring everything is in order after the deal closes.
Pricing:
TBD
Key features:
- Reviews legal documents
- Learns your risk tolerance and adapts, highlighting key points that require your attention
Considerations:
- It is not a cheap solution
5. Task Manager Kanban Boards - Trello, Asana, Tupelo
Kanban boards, like Trello or Asana, can manage the closing process - highlighting various responsibilities and bottle necks. These tools help brokers visualize each stage of the deal, by organizing tasks and documents into easily manageable cards. With automated reminders and task assignments, brokers can stay on top of key deadlines and collaborate seamlessly with their team. Kanban boards streamline workflows, ensuring that deals move forward without bottlenecks, and making it easier to manage multiple transactions simultaneously.
Pricing:
Free +
Key features:
- Kanban Boards
- Task manager
Considerations:
- Pricing scales as you add users and functionalities.
- Customization is required for each transaction.
6. Loan Broker
Loan brokers can be valuable allies in ensuring deals close more smoothly by assisting with loan approvals. They work alongside you to streamline the underwriting process, helping the buyer gather required documents early. Since delays in deals often occur due to missing documents, a loan broker can help avoid these roadblocks. Their relationships with lenders can also help identify the right financing options and avoid potential pitfalls.
Pricing:
1-5% of the loan amount - paid by the bank
Key features:
- Identify lender strike zones and pitfalls
- Leverage the broker’s relationships
Considerations:
- Often loan broker fees are passed off to the acquirer
- Broker will not get their referral fee from the lender
7. Data Rooms
Any business broker who values the confidentiality of their client needs to be using a data room. It ensures that sensitive documents are securely stored, retrieved, and shared, providing peace of mind for both brokers and their clients during critical deal stages.
Pricing:
Free +
Key features:
- Secure document storage
- Secure document retrieval
- Secure document sharing
Considerations:
- Can be cumbersome for uploaders and receivers
8. Buildium and AppFolio - Future
In real estate, platforms like Buildium and AppFolio use AI to integrate with property management software after closing, automatically transferring ownership details to property managers and updating systems in real time. These platforms streamline the transfer of crucial data, such as tenant information and maintenance history, ensuring the new owner has immediate access to all relevant property details.
Pricing:
TBD
Key features:
- AI-powered transfer of ownership and knowledge
Considerations:
- Not designed for SMB M&A; platforms are catered to real estate management.