Artificial Intelligence in Mergers & Acquisitions (AIMA)
AI is at the forefront of most organizations strategy these days as it offers efficiency, high ROI, and it automates a majority of tasks in any company. One area in which it is a key asset is within the Mergers & Acquisitions space as it enables private equity and corporate players a plethora of options the assist the overall process.
The following is an overview of how Generative AI can impact the M&A industry:
Deal Identification
- Finely tuned AI algorithms can parse huge tracts of raw data and disseminate the best possible investments targets with quantifiable accuracy
- Combining multiple methodologies into a focused AI engine allows for the best of disparate approaches
- Automation of data points, quantitative analysis, and human qualitative input make the process more efficient
- Machine Learning (ML) allows for aggregation of compliance, ESG, and regulatory risks to be addressed in a centralized and tracked capacity
- AI can reduce the complexity of operational and IT processes necessary for the target/parent organizations
- Project management and Cyber Risk tool are now AI-enabled allowing for all processes to be tracked and predicted to reduce risk exposure
- Sign to Close and Day 1 have an immense amount of variables which can be organized and rationalized through AI analytics and adaptive heuristics
- Most of the deal's financial viability comes into play further after the initial transaction including market shifts and changes in overall operating economics which predictive AI can support
- Day 1 and Sign to Close
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