Ask Me Anything Summary

Dylan Gans, co-founder of Baton Market, joined our community to share insights from the frontlines of SMB deal flow. Baton Market, a next-generation marketplace that goes beyond traditional listings to guide deals through to completion, has carved out a unique position by combining AI-powered tools with high-touch seller support. Beyond the platform, Baton gets deeply involved with deal execution, essentially functioning as main street business brokers while leveraging technology to create more efficient processes.

Reimagining the Business Marketplace

The traditional business marketplace model has a fundamental flaw: it treats complex business transactions like simple product listings. Baton takes a radically different approach, getting deeply involved in deal execution from start to finish. "We get really deep with the seller and guide them along their journey," Dylan explained. This philosophy manifests in several innovative ways.

First, unlike platforms that simply collect listings, Baton requires sellers to pay retainers and complete a structured onboarding process. This creates what Dylan calls "high fidelity" listings, each including verified financials, video interviews, and standardized documentation.

The platform's infrastructure reflects this commitment to quality:

• A master NDA system giving buyers immediate access to complete deal data

• Standardized information requirements ensuring consistent, detailed listings

• Built-in tools for offer submission and deal progression

• Direct connections to lenders, lawyers, and other essential service providers

The Human Element in Deals

One of the most compelling insights Dylan shared was about the fundamental nature of business sales. "Sellers of small businesses are HUMAN," he emphasized, sharing that sellers frequently choose buyers they personally connect with, even over marginally better offers.

This human element requires buyers to approach deals differently:

• Take time to learn what made the seller successful

• Ask thoughtful questions that show genuine interest in their legacy

• Respond promptly and professionally to all communications

• Include personal statements explaining why you're the ideal steward of their business

As Mike O. noted from his acquisition experience, these human touches often make the difference between winning and losing deals. It's not just about the highest offer – it's about building trust and demonstrating that you'll be a worthy successor to what they've built.

Market Insights

Beyond the traditional marketplace model, Baton is pioneering several approaches to deal sourcing and structure. Their experience facilitating dozens of transactions has revealed clear patterns in successful deals:

• Most transactions trade between 2-4x multiple with some seller financing

• Working with lending partners early helps manage price expectations

• All listings undergo SBA pre-qualification to ensure realistic pricing

• Seller training commitments are documented before closing

Perhaps most interesting is their newly launched "Private Listings" feature. These are anonymized profiles of businesses that aren't actively for sale but are open to fielding interest. "These are TRUE off-market deals," Dylan emphasized, explaining how this helps surface opportunities before they hit the broader market.

The platform also takes an innovative approach to seller qualification by connecting owners with lending partners early in the process. This third-party validation often helps bridge the gap between seller expectations and market reality – a crucial step in getting deals done.

Looking Ahead

Baton's next phase of development reveals how deal sourcing platforms are evolving beyond simple listings. While many searchers in our conversation highlighted the value of their current features like seller video interviews and instant data room access, Dylan shared several upcoming innovations worth watching:

• A new approach to off-market deals where buyers can proactively express interest in businesses that haven't yet gotten a valuation on Baton, with the platform handling cold outreach

• LLM-powered data room analysis to help buyers quickly identify key trends, risks, and opportunities in financials and business data

• Tools for post-acquisition performance tracking, letting owners see their valuation evolve over time

The emphasis is clearly on becoming a true deal partner rather than just a marketplace. As Dylan noted during rapid-fire Q&A with members like Reid H. and Mike O., many of these features came directly from searcher feedback about pain points in the traditional deal process.

The key insight for searchers? Tools are evolving to support rather than replace relationship building. While platforms can help with initial sourcing and analysis, success still comes down to, as Dylan put it, taking time to "learn what made them successful" and building genuine connections with sellers.

With 11,000+ active buyers and growing, Baton is focused on maintaining high engagement while scaling their platform. For those interested in learning more, check out Baton Market and follow Dylan on X @dylangans.

EBIT Community

Our growing community got valuable insights from another candid AMA session, this time with Baton Market's founder on the realities of SMB deal sourcing. Members like Grania pushed the discussion beyond typical marketplace questions into real challenges searchers face, while Tim and Mike shared their experiences with different deal platforms. When Reid asked about proprietary deal flow, it sparked a great discussion about relationship-building in acquisitions. Join the conversation below.