SMBee Business Update

SMBee Business Update

SMBee Business Update

Launching of SMBees Waitlist

SMBee Founders

Jun 1, 2023

5 min

SMBee Founders

Jun 1, 2023

5 min

We are starting SMBee in order to create a marketplace and underlying technology platform that will enable buyers and sellers of Small & Medium Businesses ("SMBs") to more efficiently and effectively screen interested parties and ultimately transact.

We view the current MLS listing marketplace as a segment that is [ripe] for fresh [innovation]; current products in the market are dated and provide for both a confusing and unhelpful user experience.

In addition to the lack of innovation we are seeing in what we refer to as SMB marketplace and SMB M&A technology (excluding the $$$ to $$$$ B2B tech targeting GS, MS and Hedge Funds), we see a massive opportunity to help facilitate a once-in-a-lifetime, generational wealth shift and [enable] small business continuity.

The retiring baby boomer generation holds ~$6-7trn of wealth in private business assets, a lot of which can be sold in traditional M&A formats over the next few decades.

According to Forbes… "Over the next two decades, the United States will experience an unprecedented shift of demographics and finances that will likely be felt by every American."

In addition, we view the up-and-coming generations globally as a generation that values independence, loves side-hustles, and are showing desire to both own and start their own businesses.

"According to a recent survey conducted by EY Ripples and JA Worldwide of 6,000 active and former JA Worldwide participants born between 1997 and 2007, 53% hope to run their own business within the next ten years. That proportion increases to 65% for those who have already entered the workforce."

But first, we at SMBee believe we must properly educate the market and work out some of the kinks in the M&A process to act as efficient facilitators and ultimately fiduciaries in the process.

Right now, we see a bunch of problems with the current model that we would like to address:

Business Search: The process for business search is very manual in nature. One must inefficiently diligence businesses sectors, revenue models, and franchise formats and then screen based on where they live, their access to financing, and another dozen or so criteria to triangulate at their ultimate acquisition destination. This is all before getting through negotiations with the seller and finding [closable] financing.

CRM / Decision Process: [ ]

Process Simplification & Controlled Disclosure: With our innovative SMB marketplace we will allow sellers and selling marketplace participants to efficiently list their businesses for sale and 'control the data-room,' meaning selectively share financial information, presentation memorandum, key operating materials, and with buyers, whose access to financing and credibility have already been verified by SMBee (to our best ability :)).

Pre-Screened Buyer & Seller Marketplace: Listed businesses that list under our Beehive Badge have, while not disclosure upfront, built out what we think is a great starting point for due diligence discussions, including: historical line-item financials, estimated buyer financial projections (if disclosed), verification of bank account information, seller ID verification, entity verification, [ ]. For buyers, we hope to create a process that allows for effective screening of acquisition opportunities, due diligence, and modeling and analysis of financial scenarios and returns. Similar to our seller Beehive Badge, we have a buyer Beehive badge that implies a level of acquirer verification, including: bank account balance verification, buyer ID check.

Business Continuity: For both buyers and sellers, we are joining in the creation of the future of small and medium businesses in the United States and hopefully, abroad. A future where businesses can be bought and sold in a more free-flowing manner without punitive in-place processes and unnecessary structural costs while providing a healthy level of innovation to a sector that is often thought of as 'sleepy.'

I ask that you sign-up for the newsletter and follow along in the process. In addition, we are open to taking feedback from market participants and share our contact e-mail below.

Best,

CS