Recent headlines have been broadcasting news of mergers, acquisitions and private equity investments--all good news for TX2 Systems, a Baltimore-based software company started by Juan Tosoni. TX2 creates software that automates and organizes institutional investing for private equity groups, investment banks and others.
In 2006, there were roughly 10,000 M&A deals consummated in the U.S. with a value of $5 million or more, says Tosoni. Despite the upsurge, most investors continue to rely on spreadsheets and e-mail to coordinate even the most complex multimillion-dollar mergers. One by one, these investors are moving into the digital age by using TX2 software.
"You can't do a deal on a napkin anymore. You've got rules and regulations; you've got shareholders and multiple parties involved," says Tosoni, 42. "Buyers and sellers have multiple partners and law firms. [Our software] is not just facilitating the transaction, it's managing the full M&A strategy from end to end."
Although TX2, which had sales of about $5 million for 2007, is targeting investors with transactions valued at $5 million or more, all entrepreneurs should hope that the company thrives: Keeping more control of deal flow should help bankers and lawyers make investments more quickly and with more confidence. And because the software also helps manage post-transaction business integration, companies benefit, too.