How dealmakers can use AI to predict bidder behaviour

What if you could predict – with unmatched accuracy – how your deals were progressing, in just a matter of minutes? What if you had the foresight to direct your clients with certainty toward a successful transaction? Or even better still, imagine if you had automated reporting at your fingertips so you could know without ever having to ask.

Ansarada's AI deal technology was born out of a need to make life easier for those in a deal. After carefully studying and analysing tens of thousands of deals, we knew there had to be a correlation between activity inside the virtual data room and the likelihood of an offer during an M&A transaction – so we put it to the test. The result? The inception of our ever-growing AI capabilities, the Bidder Engagement Score.

Get to know our AI: Bidder Engagement Score

The Bidder Engagement Score is a machine learning algorithm trained and tested on 35,000+ deals. It uses artificial intelligence to tell you who is engaged, who’s not and why, by aligning your bidders’ behaviour to patterns of successful and engaged bidders across 57 separate data attributes.

To use it is simple. Once in the transaction room, go to your Settings and ensure your transaction type is merger, acquisition, divestment or insolvency. Add in your guests separately, and they will automatically be grouped into individual bidding teams.

At the beginning of every week, an email is automatically sent to you with your Bidder Engagement Score. As it’s directed to your inbox, it’s accessible on mobile, tablet – anywhere on the go. Uncover insights that support your gut instinct with objective data, so you can base your next move on real information – whether it’s challenging their interest or removing them from the deal entirely.

How this AI will transform your deal strategy

See who is interested and who is not. Get a pre-warning early in the deal process as to which bidders are the most likely to drop out of the process. Kick out the time wasters and respond rapidly to falls in interest. This frees up your time and attention to focus on bidders that are much more likely to ultimately make an offer.

Maintain competitive tension. The best deal outcomes occur when there is competitive tension at the end of the due diligence process. The Bidder Engagement score helps by giving you a crystal clear indication of when you will need to pull other parties into a transaction to maintain competitive tension.

Make earlier, more accurate predictions. Make informed decisions during your transaction based on real data. You’ll be able to accurately predict bidder outcomes, with 97% accuracy as early as by day 7. That’s better than a human analyst – and much, much faster.

Get to the ‘why’ behind the data faster. The score eliminates the need for manual collection and reporting of isolated or subjective statistics, saving you time and expense.

Smart Sort

Ansarada's AI technology also powers the Smart Sort feature, which can automatically organize your data room for you. When triggered, Smart Sort organizes documents in real time as they are being uploaded to your virtual data room and sorts them based on pre-specified patterns.

Order your information in different ways, including alphanumerically, by date or by financial quarter, with zero manual effort.

Let Smart Sort do the work for you:

• No more dragging and dropping files where you need them to be

• Cut significant manual and low-value work

• Get the flexibility to adapt to different required structures in minutes

AI-driven insights mean less gambling, more fact

AI-driven insights are as close as you’ll get to seeing the future. They allow you to accurately forecast future trends ahead of time, leading to better decision making and strategies that can’t help but be successful. And that’s just the tip of what AI technology can do for dealmakers.

More on AI in deals:

• AI-Powered Due Diligence
• How AI in M&A is changing the future of deals
• How AI is shaping due diligence in Benelux M&A