How Foundy Uses AI to Match Buyers & Sellers, Cutting M&A Costs By 70%

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A few months ago, I came across Foundy, a mergers and acquisitions (M&A) platform with a unique approach. Although M&A is a major part of Foundy’s core capabilities, it’s more than a marketplace for buyers and sellers.

Foundy is UK-based and targets the European audience, which the company feels is underserved by industry leaders. However, Foundy can be used by businesses and individuals in the U.S. and other locations.

Although the company is still relatively new (launched in 2022), it’s already developed a community of nearly 15,000 users. Foundy claims to reduce costs by 70% compared to traditional M&A. The platform uses AI to match buyers and sellers, streamlining and simplifying the process for both sides. It also assists with due diligence and other phases of an acquisition.

Aside from M&A, Foundy also helps startup founders by using AI to raise capital and providing plans to increase valuation for a future exit.

Interview with Joe Lewin, founder and CEO of Foundy

Recently, I had the opportunity to speak with Joe Lewin to learn more about Foundy and how it works. This interview focuses on the M&A aspects, but if you’d like to learn more about how Foundy helps raise capital, please visit Foundy.com.

Please tell us about your background and what inspired you to create Foundy.com.

My journey for Foundy started with founding and exiting my first business in 2022. It was already known that the traditional M&A process needed modernising, but this experience further solidified my understanding.

This experience motivated me to create Foundy.com—a platform designed to modernise and simplify the M&A process, making it accessible and efficient for all parties involved. My goal was to leverage technology to create life-changing exit opportunities for business owners while streamlining the acquisition process for buyers.

What challenges in the traditional M&A process motivated you to develop an AI-driven portal for acquisitions?

The traditional M&A process is notoriously slow, complex, and expensive. Many smaller businesses find themselves sidelined because traditional M&A advisory firms and investment banks focus primarily on larger deals (those over £15 million in revenue). This creates a significant bottleneck for the vast majority of smaller businesses.

I experienced these challenges firsthand and saw a clear need for a digital, AI-driven solution that could democratise the M&A process. Foundy addresses these issues by providing an end-to-end platform that simplifies due diligence, legalities, and deal completion, thereby saving time and reducing costs for both buyers and sellers.

Who are the primary users of Foundy?

Foundy serves a diverse user base that includes founders, acquirers, and M&A advisors. The platform is designed to support the needs of various stakeholders in the M&A process.

Our primary users are buyers, including software aggregators, private equity funds, and high-net-worth individuals who seek profitable business opportunities.

We also cater to founders looking to sell their businesses, many of whom are part of our rapidly growing network.

Additionally, M&A advisors use Foundy to access a streamlined deal flow and support their clients through the acquisition process​.

How does Foundy streamline the acquisition process compared to traditional M&A methods?

Foundy revolutionises the acquisition process by offering a comprehensive digital platform that integrates all aspects of M&A. Traditional methods often involve multiple intermediaries, extensive paperwork, and prolonged timelines. In contrast, Foundy consolidates everything into a single platform, providing tools for due diligence, legal documentation, and direct communication between buyers and sellers. This approach significantly reduces the time and cost associated with M&A transactions.

Foundy’s new AI-driven portal goes beyond streamlining. It provides intelligent matching algorithms that pair buyers with the most suitable acquisition opportunities based on a range of criteria, including industry, size, and growth potential. This ensures that both buyers and sellers can find the best possible matches quickly and efficiently.

Additionally, our portal offers advanced analytics and insights, giving users a clear understanding of market trends and valuation metrics, which further simplifies decision-making.

Foundy’s end-to-end support includes data room preparation, comprehensive due diligence checklists, and post-acquisition integration guidance, making the entire process as seamless as possible. This innovative approach is transforming the M&A landscape, providing unparalleled efficiency and transparency.

How does Foundy’s AI match buyers and sellers? Can you walk us through the process?

Foundy’s AI employs advanced algorithms to match buyers with sellers based on a range of criteria. The process begins with both parties providing detailed information about their preferences and requirements.

For buyers, this includes industry focus, budget, and acquisition goals. Sellers input details about their business, including financial performance, industry, and growth potential. The AI then analyses this data, comparing it with historical transactions and market trends to identify optimal matches. This ensures a high level of relevance and efficiency in connecting suitable buyers and sellers.

How do you see the role of AI evolving in the M&A space over the next 5-10 years?

Over the next 5-10 years, AI is set to revolutionise the M&A space by making the process faster, more efficient, and more transparent. AI will further automate due diligence, reducing the time and cost associated with these processes. Predictive analytics will enhance decision-making by providing deeper insights into market trends and business valuations.

AI-driven platforms will also facilitate better post-acquisition integration, helping companies to realise synergies more effectively. Overall, AI will democratise M&A, making it accessible to smaller businesses and leveling the playing field.

What future developments or features can we expect from Foundy?

Future developments include enhanced AI capabilities for more precise matching and predictive analytics to better forecast market trends and valuations. We are also developing features for improved post-acquisition integration support, ensuring smoother transitions for acquired businesses.

Additionally, we plan to expand our educational resources and community features, providing more tools and support for founders and acquirers. Our aim is to make Foundy the most comprehensive and user-friendly platform for M&A transactions.

Can you explain Foundy’s fee structure for buyers and sellers?

Foundy operates on a transparent fee structure designed to be accessible for businesses of all sizes. Sellers can create an anonymous listing for free. If they choose a premium sell-side advisory package, there is a fee based on the level of support required.

Buyers have access to a subscription model that provides regular deal flow and advanced analytics. Specific fees are tailored based on transaction size and complexity, so buyers and sellers receive value for money without unexpected costs.

Can you share any success stories or case studies that highlight the effectiveness of Foundy in facilitating online business acquisitions?

One notable success story involves a bootstrapped SaaS company that used Foundy to facilitate its acquisition. The founder, initially overwhelmed by the traditional M&A process, found Foundy’s platform intuitive and supportive. The AI-driven matching connected him with a private equity buyer within weeks. The streamlined due diligence and legal processes ensured a smooth transaction, ending in a successful exit that exceeded the founder’s valuation expectations. This case exemplifies how Foundy’s technology can simplify and expedite the acquisition process, providing significant value to both sellers and buyers.

What advice would you give to founders looking to sell their online businesses?

For founders looking to sell their online businesses, preparation is key. Ensure your financials are in order and well-documented, as transparency will build trust with potential buyers. Focus on highlighting your business’s unique value propositions and growth potential.

Engaging with a platform like Foundy can streamline the process, offering tools and support to present your business effectively. Additionally, be patient and selective about potential buyers to find the best fit for your business’s future.

What tips would you offer to acquirers seeking to purchase online businesses through Foundy?

Acquirers should begin by clearly defining their acquisition criteria, including industry focus, budget, and strategic goals. Utilise Foundy’s advanced search and matching tools to find suitable opportunities. Conduct thorough due diligence, leveraging the platform’s resources to analyse financials and market positioning. Engage directly with sellers to build rapport and understand the business beyond the numbers. Finally, be prepared to act swiftly when a suitable opportunity arises, as the best deals often attract multiple interested parties.