Need help on an M&A tool
TL;DR Building an M&A web app, need input on functionality and use cases
I am creating and M&A web app that tracks M&As via public EDGAR files and web scrapping, provides comps, spreads, company info and more. My next iteration will include an algorithm to let you predict effects on stock prices and other details based on different industry/market conditions.
I am currently work on the integrations team of a boutique consulting firm, but will be applying for an MBA next year with a goal of pivoting to IB. This project is my way of getting my feet wet in finance and showing interest for apps. I plan on making this free or low cost for students when publicly available. That being said, my current finance experience is admittedly limited, so...
Is there a real use case for this app?
What features, functions, data, etc. would you like to see from this type of tool?
Is anyone interested in taking a look and providing feedback?
Based on the most helpful WSO content, your idea for an M&A web app has potential, especially if it addresses gaps in existing tools and provides value to students or professionals in finance. Here’s some insight and advice:
1. Use Case for the App
2. Features and Functions to Include
To make your app competitive and useful, consider these features: - M&A Deal Tracking: - Scrape and organize public EDGAR filings for deal announcements, terms, and updates. - Include filters for industry, deal size, geography, and acquirer/target profiles. - Comparable Analysis (Comps): - Provide pre-built templates for trading and transaction comps. - Allow users to customize metrics (e.g., EV/EBITDA, P/E ratios). - Company Profiles: - Include financials, key ratios, and historical performance. - Integrate with APIs like Yahoo Finance or Alpha Vantage for real-time data. - Predictive Analytics: - Use algorithms to model stock price impacts based on deal type, industry trends, and market conditions. - Offer scenario analysis tools for users to test assumptions. - Collaboration Tools: - Enable users to share deal data, notes, and models with team members. - Export Options: - Allow users to export data to Excel or PowerPoint for presentations. - Educational Resources: - Include guides on M&A modeling, valuation techniques, and deal structuring for students.
3. Differentiators to Focus On
4. Feedback and Testing
5. Next Steps
If you’d like, you can share a demo or prototype link, and I’m sure many in the WSO community would be happy to provide feedback. Good luck with your project—it’s a great way to showcase your interest in finance and tech!
Sources: What kind of tools / apps do you wish existed in the industry?, Structuring and Flow in an M&A Model, Knowledge Sharing: Corporate Development / M&A
Sorry but not useful for M&A. What you are actually building is a hedge fund merger arb tool, which might actually have some use.
Thanks for the feedback! I will look more into hedge fund merger arb. I see you're in the HF space any features I could add that are high value? Or anything your tools may be missing that I could incorporate?
I would gently disagree. Post-announcement share price reaction is pretty important to acquirers, and by extension their advisors.
If you're building anything that needs to pull public filings, the quality of exchange APIs varies wildly. SEC EDGAR has a solid REST endpoint that's well documented. Companies House (UK) is decent too. But most other exchanges have barely functional search interfaces, inconsistent data formats, and zero documentation. It's a lot of reverse engineering.
It would have to be extremely robust with insane amounts of training data for any firms and bankers to consider using it. Also, your main selling point would be the algorithm being wrapped it… this algorithm is essentially doing the job of the analysts and HF investors, etc. so it’s gotta be the best. Anthropic, Bloomberg, Google, etc have been building your competition for 5 years
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