Insights: How Bidzi's Innovative Platform Supports SME Growth And M&A Efficiency In The UAE
The economic landscape in the UAE is thriving, with SMEs playing a crucial role in this growth. Recent figures show that M&A activity in the Middle East and North Africa (MENA) region reached a new high of $86 billion in 2023, up by 4% from the previous year. This spike in M&A underscores the vibrant investment climate and the government's commitment to economic diversification, as seen in strategic initiatives like Dubai’s Economic Agenda D33 and Abu Dhabi’s Economic Vision 2030.
In a significant move to facilitate the growth and efficiency of the UAE's burgeoning small and medium-sized enterprise (SME) sector, Bidzi has introduced an innovative platform. This platform is a game-changer in the mergers and acquisitions (M&A) landscape, offering a unified solution that simplifies the entire transaction process.
With SMEs making up over 90% of the country's businesses and the sector poised to hit the 1 million mark by 2030, such a development is timely. Bidzi's platform stands out by offering an integrated suite of services that address the complexities and challenges traditionally associated with M&A processes, marking a pivotal moment for the economy.
In an exclusive interaction with OneArabia.me, Akshay Dosaj and Asif Rashid, the pioneering minds behind Bidzi, shared insights into their groundbreaking platform tailored for the UAE's small and medium-sized enterprises (SMEs). As the Co-Founder and CEO, Dosaj, along with Rashid, the Co-Founder and COO, shed light on how their initiative is set to revolutionize the digital landscape for businesses in the region.
How did the idea of Bidzi come into realisation?
Having scaled and exited multiple businesses of his own, Akshay realized the challenges at every step—finding professional help for marketing materials and financial projections, sourcing the right buyers, and accessing affordable legal services. Additionally, securing an escrow agent to ensure a safe transaction was nearly impossible. Akshay shared these struggles with Asif, and together they envisioned automating and simplifying the process into a seamless, all-in-one solution. That’s how Bidzi was conceptualized.
What specific services does Bidzi offer to streamline the M&A process for businesses?
Bidzi simplifies the traditionally complex sale and acquisition process by offering an end-to-end solution. From business valuation, investor matching, and the creation of high-quality marketing materials to legal support and escrow services, the entire process is integrated into a simple, user-friendly interface.
How does Bidzi ensure the vetting and quality of businesses listed?
Every business listed on the platform is required to provide certain business information as part of the listing and onboarding process. Each listing is reviewed by the Bidzi team and only goes live after the team is satisfied with the legitimacy of the business and the seller. There have been occasions where businesses have been rejected by Bidzi for not providing sufficient or accurate information.
In what ways does Bidzi support SMEs specifically?
With SMEs accounting for 94% of all companies in the UAE and employing 86% of the workforce, they represent a massive driver of the country’s prosperity. Coupled with the fact that only 40% of businesses survive in the UAE beyond 5 years, it is evident that there are thousands and thousands of businesses that are either shutting down or changing ownership every single year.
These businesses require a range of high-quality corporate and M&A services at affordable prices, both of which are currently elusive due to the prevailing fragmented nature of these services and the high cost of expert advisers. For example, hiring a broker, a lawyer, an escrow agent, and an M&A advisor can quickly raise the costs of selling one’s business, and the business owner may look at dropping essential services like legal support and escrow to finish the transaction. Bidzi addresses these challenges by simplifying and speeding up the business-selling process in the UAE, offering exceptional quality at an affordable price aligned with business owners' goals.
Can you describe the user interface of Bidzi and how it simplifies the M&A journey for its users?
Bidzi distinguishes itself in the M&A advisory landscape by consolidating all essential services into a single platform. Instead of engaging with multiple entities and specialists (including M&A advisors, brokers, lawyers, and escrow agents) with multiple contracts, which can result in multiple conversations, Bidzi significantly simplifies the experience of acquiring or selling a business while saving time and cost.
For example, if a business owner lists his/her business for sale on the marketplace, he/she can approve NDAs, interact with potential buyers, negotiate the offer, share all relevant documents, and finalise the legal documents associated with the sale of the company—without leaving the Bidzi portal. By eliminating complexity, Bidzi provides a simple, easy-to-use experience for everyone.
What role does technology play in facilitating the various services offered by Bidzi, such as valuation and buyer matching?
While technology is at the core of the Bidzi platform, an individual of any level of digital experience can feel at ease using the array of services provided on the platform. For example, when a business owner submits their financial data and asking price, the platform uses the data to determine the EBITDA multiple of the business and cross-references that with the existing industry EBITDA multiple (pulled together from a number of different sources, including E&Y, NYU, PwC, Statista, and others), which are shown together on the business’s listing page on the Bidzi marketplace.
In this way, potential acquirers are armed with all the relevant insights to make an informed choice on whether to pursue the opportunity or not. Similarly, buying matching is enabled through a series of signal identifications based on choices made during registration, the types of listings that are viewed by potential buyers, and the historic data of requests for acquisitions that have been shared with Bidzi via investors.
How does Bidzi align its operations with the broader economic visions of the UAE?
There are two key ways in which the Bidzi model is closely aligned with the broader economic visions of the UAE:
- Facilitating Foreign Direct Investment (FDI): One of Bidzi’s key target markets is international buyers looking to establish a presence in the UAE. By providing them with a portfolio of vetted business opportunities, Bidzi fosters an environment that facilitates FDI into the UAE. This aligns with the UAE’s National Investment Strategy 2031, which aims to double the current FDI in the next 7 years.
- Empowering Emirati Entrepreneurs: Bidzi provides young Emiratis with a plethora of business choices to embark upon their entrepreneurship journeys, supporting the government’s initiative to encourage entrepreneurship. Programs like the Dh300 million fund set up by the Emirates Entrepreneurship Council and the Abu Dhabi Khalifa Fund for Enterprise Development - which provides up to Dh2 million in funding — demonstrate the country’s commitment to fostering local businesses.
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