1. How to Use A.I. in the
M&A Process to Gain
Competitive Advantages
The Deal Economy Conference
Nichole Jordan
3. © 2018 Grant Thornton LLP | All rights reserved | U.S. member firm of Grant Thornton International Ltd
At The Deal Economy Conference on middle market
deal-making this fall in Chicago, I had the pleasure of
sharing a stage with an impressive roster of senior
executives, influential dealmakers and investors for
a discussion of mergers and acquisitions.
For my presentation on how mid-market companies
are leveraging A.I. to gain competitive advantages in
the M&A process, I shared a cycle of intelligent
technologies which complement one another to
give middle market businesses an edge.
How to Use A.I. in the M&A Process
to Gain Competitive Advantages
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4. © 2018 Grant Thornton LLP | All rights reserved | U.S. member firm of Grant Thornton International Ltd
Every company and situation is unique. When preparing to
implement an A.I. solution, it needs to complement your
business strategy. This starts with boards and management
identifying what is wrong, missing or needs improvement.
Are you looking to…
• Bolster your in-house talent?
• Attract a new customer base?
• Break into a new geography?
• Add proprietary technologies?
These questions need careful consideration during board meetings to fill business gaps.
They’re also not one-time questions. They should make regular appearances at any
executive or board meeting to make sure everyone is aligned and on the same page.
Align
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5. © 2018 Grant Thornton LLP | All rights reserved | U.S. member firm of Grant Thornton International Ltd
Once you’ve agreed upon the areas for improvement, you
implement an A.I. solution that scans the market and returns
a list of target companies for potential acquisitions.
Through machine learning, these technology solutions ingest massive amounts of
publicly available data – from patent filings, valuations and financial reporting to
press releases, social media and customer feedback – scoring a short list of
acquisition candidates matching business needs you’ve prioritized.
Analyze
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6. © 2018 Grant Thornton LLP | All rights reserved | U.S. member firm of Grant Thornton International Ltd
Thanks to the first two steps, you’re
able to conserve resources on a
process consuming most companies’
human capital investment:
monitoring.
Through a dashboard, you’re able to see a list of
target companies and scores based on how they
would fill existing gaps. This is where predictive
analytics come into play and you’re able to monitor
changes and target patterns to predict value and risk.
Perhaps a company announced a new product
offering or there is board turnover flagged by A.I.
If you’re not continually monitoring, you’ll
miss an opportunity to companies that are.
Monitor
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7. © 2018 Grant Thornton LLP | All rights reserved | U.S. member firm of Grant Thornton International Ltd
So how can A.I. change the
M&A process?
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They key to an acquisition is accuracy and speed in identifying value and risk of target companies.
A.I. finds the hidden value and predicts latent risk by continually monitoring and tracking
datapoints, 24/7. It never sleeps. It never calls in sick. Best of all, it isn’t a hidden secret inside a
vendor’s black box. It belongs to YOU.
Contact Nichole Jordan
Nichole Jordan
National Managing Partner,
Markets, Clients & Industry
Tweet me: @NicholeJordan26
Message me on LinkedIn
Watch the
full talk
Further Reading:
• Scanning the Horizons: Board Balance Innovation, Regulation and Risk
• Boards Focus on the Workforce of the Future
• 5 Questions You Should Be Asking to Prepare for the Future
• Navigating Disruption: 6 Steps for Directors to Stay Ahead of the Technology Curve
