AI impact on M&A
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Hey everyone,
With all the new advancements in AI recently, I was wondering how it would impact M&A. I can see it being particularly helpful with target identification and company analysis, especially in summarizing the large amount of documents available.
Do you see any other interesting applications?
I believe, decision makers can use AI as a decision-support tool in all aspects of M&A, whether it is to help put together pro forma financials, an LBO analysis or to benchmark against similar past transactions. It is just a matter of time before AI becomes a must-have.
I do agree that AI can be used to support various aspects of the M&A decision making process. However, given how the existing platforms are designed to collect information from users to train their ML algorithms, I’d be concerned about putting in confidential / sensitive information that could jeopardize the transaction. One has to exercise some amount of discretion when putting info in such AI systems to avoid disclosing sensitive materials and also be discerning about how to interpret and use the information that the AI tools spit out.
I have been loving AI tools recently for the purpose of scoping, creating checklists, model comparison and summarizations. My only concern is a concern I share with Andrea, this data is being used to form part of their machine learning excersises, however there are certain tools that use your existing knowledge base and data like intercom chat that negate the data protection and security risk potentially.
AI is a tool that simplifies processes and reduces time. However, I agree with Andrea and Jamie about confidential information and also I would like to add the correct interpretation of the numbers when making decisions, solving problems or considering alternative scenarios in complex M&A deals, or another “concern” in the M&A cycle in which professional expertise or an exceptional criteria is needed.
This would be highly relevant to this topic. As it incorporates the use of AI into the M&A sector for SMEs in Japan. No reason why the same logic could not be applied to other markets or sectors.
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