How Does AI help with M&A?

Exciting times are ahead in the worlds of gen AI and M&A! Here are some thoughts and key takeaways:

๐—ช๐—ต๐—ฎ๐˜ ๐—ถ๐˜€ ๐—š๐—ฒ๐—ป ๐—”๐—œ ๐—š๐—ผ๐—ผ๐—ฑ ๐—”๐˜? ๐—ช๐—ต๐˜† ๐——๐—ผ ๐—ช๐—ฒ ๐—–๐—ฎ๐—ฟ๐—ฒ?

  • Data Ingestion and Summarization: Generative AI excels at ingesting and summarizing large quantities of data. It can automate labor-intensive, simple processes
  • Benefits: Generative AI helps companies gain better insights, increase productivity, and accelerate execution
  • Market Growth: In 2023, AI companies raised nearly $50 billion. These investments are expected to grow 300% to $200 billion by 2025

๐—›๐—ผ๐˜„ ๐——๐—ผ๐—ฒ๐˜€ ๐—š๐—ฒ๐—ป ๐—”๐—œ ๐—›๐—ฒ๐—น๐—ฝ ๐˜„๐—ถ๐˜๐—ต ๐— &๐—”?

  • Strategy and Valuation: Gen AI’s pattern recognition capabilities allow it to process vast amounts of data to evaluate markets, uncover hidden targets, and assess investment theses
  • Due Diligence: AI aids in preparing interview guides, pulling research, and comparing financial reports
  • Execution: AI supports creating planning deliverables, generating Day 1 communications, and maintaining team alignments with clean meeting notes

๐—•๐—ถ๐—ด ๐—ฃ๐—ถ๐—ฐ๐˜๐˜‚๐—ฟ๐—ฒ

In a world of “unknown unknowns,” recasting M&A strategies through an AI lens can boost revenues and reduce costs

โ€œ๐—ก๐—ผ ๐—ฅ๐—ฒ๐—ด๐—ฟ๐—ฒ๐˜” ๐——๐—ฒ๐—ฐ๐—ถ๐˜€๐—ถ๐—ผ๐—ป๐˜€ ๐—ณ๐—ผ๐—ฟ ๐—Ÿ๐—ฒ๐—ฎ๐—ฑ๐—ฒ๐—ฟ๐˜€

  • Engage with Experts: Stay informed about market trends and the potentials of gen AI
  • Embrace Evolution: Recognize that business practices will evolve. Identify areas in the enterprise value chain where AI can be leveraged to shift power dynamics.
  • Hire AI Experts: Develop and test use cases to explore AI’s potential

Everything above are my own thoughts and opinions based on my interpretation of Deloitteโ€™s report on AI and M&A. I recommend going through it yourself!

https://www2.deloitte.com/content/dam/Deloitte/us/Documents/mergers-acqisitions/us-artificial-intelligence-and-mergers-and-acquisitions.pdf

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