cass mao

Very interesting discussion here around the future of investment banking and AI Some thoughts > Grok estimates that roughly 18,000 businesses in the U.S. generate $1-10M in profit > Businesses of this size are typically valued at 3-5x EBITDA, on average, based on transaction data available > With 18,000 businesses (midpoint) and using the average EBITDA multiple + transaction fee of 5% on the TEV, total whitespace market here is nearly $19B, conservatively > As Offdeal ramps up, they will certainly start competing for larger deals but absolutely insane to me that a $19B market today has been left alone by existing banks. Essentially a land grab today > It totally makes sense that a lot of investment banks won’t have integrated AI solutions. They will likely shop around for point solution vendors across the AI spectrum, and end up with a cluster of different tools > Today, CRM at most banks don’t properly connect to the VDR. The excel models don’t connect up to a database of transactions. Transcripts from calls don’t integrate with DD trackers sent to buyers. I don’t see why traditional banks would get any better at this when AI comes into play > For most investment banks, tech is essentially an after thought. The MDs (who make the decisions) are not the ones who use the technology (analysts and associates do). There is a massive mismatch between end user and decision maker. OffDeal is solving this problem directly by building a tech focused bank from ground up Exciting times to live in