This story first appeared in the January 2008 issue of Entrepreneur. To receive the magazine, click here to subscribe.

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.