Deal due diligence overdue for disruption

Due diligence is a critical aspect of M&A and other major transactions. When working toward an outcome, it’s essential for parties on both sides of a deal to get a full assessment of all the potential risks and opportunities they face.
 
However, due diligence is labour intensive, time consuming and costly. A huge amount of information sits across multiple sources. This information needs to be gathered, analyzed and verified by different people, which naturally results in human error and gaps in data.
 
To add to this, time constraints make schedules even more demanding; due diligence work takes up valuable resources at a time when they are already scarce. The majority of those undergoing M&A due diligence are running their business at the same time.

And the longer the deal runs, the more risk is involved. AI due diligence is poised to change the game entirely.

Transform your due diligence with Ansarada Deals™—start for free today!

 

Modernizing M&A due diligence

In our digital age, the data we produce is growing at an exponential rate. This puts pressure on professionals in deal processes, who need to go through an ever-growing amount of information to reach the insights and value they need, often via manual review.

Data is the oil of the digital age; it’s become a significant driver of growth and disruption. But it’s increasingly difficult to find the risk-relevant information in these short deal timeframes.

Just like oil, data needs to be extracted and refined to unlock its real value - and that’s where artificial intelligence (AI) comes in.

AI and machine learning technology are making a major impact because of their power to filter and extract value from volumes of raw digital information. These technologies can sort through millions of data points in seconds and deliver complete data coverage – a far cry from their human counterparts - which is incredibly valuable within the M&A process.

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What is AI due diligence?

Artificial intelligence due diligence is the process of using AI and machine learning tools to complement and enhance due diligence work when preparing for and executing a deal.
 
AI tools can process and extract insights from a wealth of information, going through documents and data points as a human would, but with supercharged speed and accuracy. The key areas of use for AI due diligence include compliance and risk assessment, information synthesis, information analysis and discovery.

Benefits of AI due diligence

Besides the ability to interpret and analyze data at a rapid pace, AI and machine learning technologies are much less prone to error than people. Compared to legacy due diligence processes, AI due diligence is more efficient, more accurate, and able to offer the advantage of foresight. 

Automation and efficiency

AI tools can automate tasks and assess millions of data points in a matter of seconds, giving dealmakers the ability to run a more productive due diligence process and save significant time and cost (compared to human review). This in turn enables increased productivity of staff, whose time is freed up for higher value work.

Knowing with certainty

The predictive analytics that come with AI tools allow dealmakers to see future trends and situations ahead of time. They are able to assess, with certainty, what the most likely outcome will be - before it occurs. This type of insight is invaluable for making the strongest decisions during the M&A due diligence process.

Reduced risk

With complete data coverage and unparalleled accuracy, AI and machine learning technologies can eliminate costly human error and prevent information gaps or silos from occurring. While humans can suffer from cognitive fatigue, these tools never get tired or need a day off.

AI predictive analytics can give dealmakers a full picture of all the data so they can build a clear picture of trends and avoid pitfalls at critical deal moments.

Self-learning

These complex algorithms are able to reach greater accuracy by learning from every interaction. They get more effective and more powerful each time they are used.

Introduction to Ansarada’s AI tools

Ansarada’s AI tools can analyze the real-time flow of data from interactions between bidding parties in a deal, including huge volumes of information. This enables dealmakers to garner value from tens of thousands of data points in seconds. They can also automate hours of manual work to save significant time and cost in efficiency alone.

AI Bidder Engagement Score

The Bidder Engagement Score is a machine learning algorithm trained on more than 23,000+ deals to deliver unique insights into bidder motives in a deal. Using artificial intelligence, the score tells you which of your bidders are engaged (and which aren’t) by aligning their behaviour to patterns of successful bidders across 57 different attributes. (To learn more about the Bidder Engagement Score, download the tech brief here.)

The Bidder Engagement Score can predict what the most likely outcomes will be, with up to 97% accuracy by day 7. Get pre-warned as to who is likely to drop out of the process and enabled to respond rapidly to falls in interest. 

Most importantly, the score supports your gut instinct with real data, so you can make an informed next move based on objective information.

Smart Sort

Smart Sort is an artificial intelligence feature that automatically classifies documents and organizes them into pre-specified patterns, taking just a fraction of the time it takes to do manually.
 
Instead of dragging and dropping individual files, Smart Sort organizes information in bulk as it is being uploaded. It ensures your data room is structured the way you need it to be within minutes - whether that’s by date, by financial quarter or alphanumerically - so that due diligence work can commence in a quick and orderly fashion.

Similar questions

Within the data room, AI technology analyzes the frequency and order of words listed in due diligence Q&A questions so it can recommend similar questions. This eliminates time and effort searching for duplicate or related questions, allowing you to focus your energy where it counts – on executing a swift and seamless due diligence process and ultimately, a successful deal.

Discover AI-powered dealmaking

Digitizing and modernizing the M&A process is going to be essential for dealmakers in the new decade, and AI due diligence will be a key part of that. Companies, advisories, law firms and investment banks are just a few who will benefit from using artificial intelligence in deals.

AI tools alone can facilitate automation, efficiency and reduced risk in due diligence processes by analyzing huge volumes of data. AI-driven insights allow you to forecast future trends with accuracy, which leads to stronger decision making and the most successful strategies.