In a post-COVID-19 world, the role of Mergers and Acquisitions (M&A) will be redefined. Companies striving to defend their existing markets and accelerate recovery are looking at a wide range of strategies such as alliances and partnerships. In addition, deal makings now have to reflect the new environmental and societal priorities of the post-crisis world, which include making organic changes like going virtual, remote collaborations, and potentially less in-person networking.
Given AI developments in the areas of big data and pattern recognition, it is very likely that AI will increasingly be used in connection with a wide variety of M&A tasks.
Common time-consuming tasks such as collating information pre-deal will be taken up by AI. Redaction of all connected data to the deal and even contract analysis by the compliance team can be charted out to an automatic tool.
With a majority of companies agreeing to continue working in remote mode or in a hybrid manner where some days of the week or month people can report in office, ways and means need to be found to make the model work. The most obvious answer is to go digital and if possible, adopt and adapt any new technology that makes the transition easier.
Adopting new technology gives a company both a competitive edge and ensures resilience in a rapidly changing world.
Any M&A deal involves a lot of paperwork and data to be coursed through in a limited period of time. The deal work involves gathering all investment and banking data for review by potential investors or purchasers. Banking analysts involved in the process often spend weeks reviewing thousands of files to figure out how to organize and prepare them for a transaction. Hence, any tools that can help speed up the process are helpful. AI-powered tools can help automate tasks, reduce errors and do a thorough job of ensuring regulatory compliance. AI will allow companies to develop increasingly sophisticated models of due diligence where various types of AI-assisted search queries accompany the work of advisors such as bankers, lawyers, and accountants.
AI can use statistical methods that allow a system to learn from data and then make decisions, AI and machine learning leverage an algorithm to sift through those large volumes of data and content. It organizes, categorizes, and uploads the files for better access. It helps in the process of coming to some conclusions too, by throwing up appropriate data. AI and machine learning streamline the process, and the time taken is minuscule compared to the earlier manual dealings, which frees up deal-makers to focus on higher-value activities.
The AI process can also help throw up macro economic details such as sector data in real-time, allowing firms to have a much more detailed and nuanced view of the business realities within a country or sector. This helps them not to miss opportunities or assume unwanted risks. For companies looking for any acquisition, AI tools could be used to keep track of the company’s data to get a clear picture of its performance.
AI can help monitor and calibrate company performance, competitor performance, and larger market conditions, which gives a wholesome picture of the market. Thus, AI will be able to help companies better plan post-acquisition steps too, and build in a better exit strategy in the deal, if needed.
