Wade Myers, Chairman & CEODespite the advances in today’s technology-driven world, attempting to successfully close a capital transaction (a business loan, private equity investment, or sale) still remains frustratingly inefficient, inordinately time-consuming, and too often results in failure. While companies express frustration about their difficulties accessing capital, capital providers sit on a massive untapped supply of trillions of dollars due to their challenges in sourcing and vetting qualified lending, investment, and acquisition prospects. Capital Works’ new capital transaction management (CTM) platform bridges that gap by empowering business owners, their advisors, and capital providers to efficiently and successfully close transactions.
Like many startups, Capital Works arose from an entrepreneur’s acute awareness of market inefficiency coupled with a clear vision of the solution. Capital Works co-founder and CEO, Wade Myers, a former Army Ranger and Harvard MBA, is a serial tech entrepreneur who has successfully completed scores of strategic acquisitions as part of the business-building strategies for his various startups. Myers has extensive deal experience from his stints in corporate M&A, investment banking, angel investing, and as a partner in a private equity fund. Co-founder Gene Blanton, a Marine Corps veteran and Capital Works’ Chief Relationship Officer, is also a serial entrepreneur with deep transaction experience in his own right, having led a company that packaged and funded over 4,000 business loans. The pair developed and launched Capital Works to completely overhaul the capital transaction process, dramatically reducing the time and expense required to source, diligence, close, and monitor transactions.
“The current capital transaction process involves lots of manual tasks and several point solutions with only four or five search criteria, akin to the old 25-word ads for “men seeking women”. When a deal is underway, diligence consists of data rooms with file folders crammed with static, non-structured, non-searchable PDFs that blunt any attempt at analysis,” explains Myers. The result is a painful needle-in-a-haystack sourcing and diligence process that stretches to several months and often leads to deal fatigue and a failure to close.
Capital Works goes beyond a point solution and delivers an end-to-end CTM platform that covers the full range of aspects from preparing for a transaction to monitoring a transaction post-closing
By contrast, Capital Works’ CTM platform features a highly automated, AI-infused process where strategic, financial, and operational data is ingested from numerous sources, such as industry data, market demand data, and company financial and operational data. The highly-secured digitized data is then structured, analyzed, and synthesized in a way that allows capital providers to search standardized company profiles using hundreds of customized criteria to get precisely-matched transactions (think eHarmony for business transactions), quickly complete diligence, and experience a significantly higher closing rate at high velocity. Capital Works goes beyond a point solution and delivers an end-to-end CTM platform that covers the full range of aspects from preparing for a transaction to monitoring a transaction post-closing.
The head of SBA lending for a $30b+ commercial bank noted that the Capital Works platform would allow the bank to source, diligence, close, and fund an SBA loan in 2 weeks, as opposed to the 22 weeks currently needed. This streamlined result is possible because the platform pre-loads, pre-analyzes, and presents all the required loan data in such a way that all the bank would have to do is click a button to send the information to their loan committee.
It is no surprise that the Capital Works solution is quickly gaining traction with various advisory constituents from CPAs to fractional CFO services and exit planners, and from loan brokers to investment bankers. The company is also actively engaged in strategic negotiations with banking institutions that are looking to standardize selected banking processes on the Capital Works CTM platform.