Software that automates financial due diligence - looking for beta users

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January 08, 2024

by a searcher from Northwestern University - Kellogg School of Management in Atlanta, GA, USA

My co-founder and I have built software that automates an analysis called proof-of-cash. This is typically a big component of a qualify-of-earnings. It uncovers whether the business's income statement can be easily reconciled back to cash transactions in its bank accounts. Often it uncovers issues in whether the income statement can be trusted. If the product works as intended, our future goal is to offer this as a product to help make the industry more efficient.

I thought that the users of Searchfunder might be good groups to help us test out the software. We'd be happy to offer it for free to searchers, brokers or owners. Right now, it works with Quickbooks Online only.

One qualification: we're not looking to replace a full due diligence and we're not going to warranty anything. Rather, we can help highlight issues quickly before you spend a lot of money on professional services.

Please reach out to me here or at redacted Thank you in advance!

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Reply by a searcher
from Northwestern University in Atlanta, GA, USA
I hope it's not scary!

We don't expect to put any due diligence companies out of business! Rather, we think there's an opportunity to make a basic sell-side diligence more economic for SMB sellers. If we can do this in a standardized way that buyers can be confident in, we might be able to remove from friction in the market, improve liquidity and perhaps even volume.

Ultimately, buyers who want a full due diligence should still get that done. We might be able to make things go faster by providing well=structured inputs for the buyers's DD provider.

I should have added: I'd also be excited to chat with anyone who is interested in hearing more about what we're doing and / or sharing your thoughts.
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Reply by a searcher
from Rutgers in Philadelphia, PA, USA
Could you share what the expected inputs will be, and how strictly they will need to adhere to a specific format? I'm curious how much "cleaning" needs to happen before the software can make a usable result.
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