How the next generation of digital and AI tools will improve efficiency and slash costs for M&A professionals

M&A has traditionally been a human business, with networking and handshakes at its core. However, while the human-led aspect will always be there, digital tools including AI can be leveraged by M&A firms to grow their businesses and improve their processes. 

John Braithwaite, Managing Director at Unloq, explains that M&A professionals need to find tools to make things efficient, and what to look out for when selecting one. 

Where efficiency gains can be made, and what will drive them

Digital tools are already being used for a range of M&A processes, including deal sourcing, pipeline management, data storage, project management, and deal tracking. “For example, a deal sourcing solution we already use is Dealsuite, which has helped us find a number of opportunities we might not otherwise have found,” said John. 

However, two recent trends point to where the next gains may be made, especially with regard to due diligence.

First, on a macro level, there is an increasing focus on issues such as ESG, minimising risks, and economic uncertainty, and this has a particular effect on due diligence.

Second, digital tools are evolving. The rise of new technologies such as conversational AI offer M&A professionals new possibilities in terms of reducing inefficiency and streamlining processes. 

What M&A firms should look out for in terms of digital tools 

M&A processes such as due diligence have a set of unique requirements around security and data integrity, and this needs to be front and centre of any conversation about what kinds of tools M&A firms leverage. 

“The first challenge is security: how can we ensure that data stored in the cloud, or elsewhere is secure and not leaked. The second is how suitable is the tool: there are many tools that seem interesting but do not support M&A enough to be of value.” notes John. 

Further, they need to ensure that any tools have the functionalities and features to help them make serious efficiency gains. This doesn’t only mean the ability to access information more quickly, but also includes considerations such as being able to share with key stakeholders, what data is leveraged, support for different languages, and so on. 

Reduce time spent on due diligence processes

As an M&A firm that regularly customises and builds digital tools to optimise the process of buying and selling businesses, Unloq identified an opportunity to drastically reduce due diligence inefficiencies. 

Reccy is a tool they developed to accelerate due diligence. Some of the key features include: 

• A fast insight report, delivered within a few minutes, that gives a summary of all the key points buy-side stakeholders need to know, such as tax information, ownership and management, and legal info

• The report also indicates what is NOT there, which can save substantial time searching for information that doesn’t exist

• A Q&A function generated by conversational AI that helps with fast answers, and provides source files for referencing

• The ability to share such a data room with all key stakeholders on the buy side, in a secure, no-leak environment

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Find out more

Want to learn more about the possibilities of leveraging AI to accelerate due diligence processes? Get in touch with Unloq through Dealsuite here. 

Not a member yet? Start your free trial today and discover how you can benefit from Dealsuite.

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