Seemingly overnight, artificial intelligence became the buzzword of the year for M&A dealmakers. Whether they are business development professionals looking for high-growth AI investments or dealmakers leveraging AI to streamline their due diligence processes, mid-market investors are excited about this technology. We are sending you
The topic of AI is sure to be at the center of much of the conversation at this year’s DealMAX conference, especially the “Rise of AI Technology and its Impact on M&A” panel. Richard Lichtenstein, chief private equity data officer at Bain Consulting and one of the panel speakers, said: middle market growth He talks about his hopes for AI in trading and what attendees can expect from his panel.
Middle market growth: The topic of AI in M&A is increasing. At what point in the trading process can the most disruption occur?
Richard Lichtenstein: There are several points in the process where AI is a key focus area for most funds. Diligence often includes his GenAI questions, and many funds create his GenAI scorecard and fill it out for each trade. Part of the question is whether GenAI will disrupt businesses, but more sophisticated investors will be paying close attention to how GenAI (or AI and automation more broadly) creates upside. doing. Benefits come from either new products or services that the target can initiate, or from potential efficiencies. The same logic applies post-acquisition. What are the risks and opportunities for the companies you already own?
Part of the question is whether GenAI will disrupt businesses, but more sophisticated investors will be paying close attention to how GenAI (or AI and automation more broadly) creates upside. doing.
Richard Lichtenstein
bain consulting
MMG: How can dealmakers and their partners determine what’s the hype and what’s actually going to have an impact?
manager: There are some things you can do to gain confidence in your idea before making a big investment.
Build a bot. You can use ChatGPT for Enterprise or similar tools to create prototypes and test whether your use case is possible in LLM. If your proof of concept (POC) works, it’s probably a good sign that you can build a complete application that actually solves your problem.
Related content: DealMAX Preview: What’s next for your strategy?
Find ready-made solutions or add-ons to existing SaaS solutions that can perform specific tasks. Currently, many of these existing solutions require significant customization to be fully utilized, but the fact that they exist shows that the task is possible. For most companies, it’s better to buy than build when available, especially for efficiency and productivity use cases.
MMG: What should attendees expect from the “Rise of AI Technologies and Implications for M&A” panel?
manager: The world moves so fast that in May there will be many topics that don’t exist today. But I’m sure they can talk about the latest use cases that funds are using for diligence, post-acquisition, internal operations and the early results they’re seeing.
Join us on Tuesday, April 30, 2024 at Aria in Las Vegas. The rise of AI technology and its impact on M&A Featured sessions.buy tickets DealMAX.org.
carolyn vallejo teeth middle market growthdigital editor.
Middle Market Growth is produced by the Association for Corporate Growth. For more information about the organization and how to become a member, please visit www.acg.org.
