AI seems set to have a disruptive impact on merger and acquisition processes and the work of all corporate finance professionals. But what is that impact? Will all M&A processes soon be automated? Will all M&A lawyers and acquisition advisers soon be out of a job?
Recently, IRIS Corporate Finance assisted DataMask, an AI-specialized business in anonymizing documents in its sale to Main/ Xxllnc Group. In addition, we at IRIS Corporate Finance invest in the latest AI technology precisely to be able to give more attention to the human factor in a process. After all, our motto is and remains: 'We deal with you'.
Impact AI on process
More and more parts of an M&A process are being touched by AI. In our practice, this goes far beyond having AI generate content for a memorandum. Even rapid penetrations of a market, with the key players and analyzing a given data set is faster than before. In addition, our entire CRM database has been unlocked by AI, ensuring that our internal knowledge of sectors and buyers is optimally unlocked for all our advisers.
In other specialties within M&A, AI is also accelerating. We see a huge improvement in being able to analyze large amounts of data, for example when DD specialists study data rooms, or lawyers draft contracts.
Dose of creativity
Despite AI having a huge impact on how quickly information can be analyzed and gathered, the importance of good advisers in an M&A process remains essential. Rarely is the conclusion of ChatGPT or Copilot powerful, rarely is the longlist of Grasp.ai correctly prioritized, not to mention the limited information available on (Dutch) SMEs. In addition, we have to be very aware of the confidentiality of the information we work with.
Besides, an M&A process is not just about to-the-point texts, complete market information or sharp data analysis. The most important added value of an adviser is often in a healthy dose of creativity, taking into account your client's specific needs and creating the right momentum in a process. You can't and don't want to leave that to machines.
Human Work
AI adds significant value to the "commidity" side of our profession. It allows everyone to get partial over- or insight with just a few clicks. This leaves more attention and space for when it really counts: for what people care about and when creativity is needed.
In short, ChatGPT is not going to sell your company. A statement that is happily endorsed by all of our clients, including the founders of DataMask, one of the first AI pioneers in our country.
