Artificial intelligence is transforming the mergers and acquisitions landscape.

Artificial intelligence (AI) has suddenly become a major issue, shaking up every sector of the economy. From finance to medicine, its applications are revolutionising working methods and calling into question functions that are nevertheless considered to have high added value. So what is the state of play for M&A advisers?

Here’s how things stand

According to a study conducted by Bain & Company in January 2024, only 16% of M&A professionals had already integrated generative AI into their processes. However, the trend is evolving rapidly, with 80% of those surveyed planning to adopt it within the next three years.  So it’s a good time to take stock of our sector.

1. Editorial support. Artificial intelligence has begun to make its mark on the general public with note-taking tools (AI Notetaker, etc.), translation tools (DeepL, etc.) and writing tools (ChatGPT, etc.). In the M&A sector, these tools are highly prized because they facilitate sector analyses and company descriptions, which form part of Information Memoranda (documents presenting companies to be sold).
2. Identifying targets. The search for counterparties, whether companies to be acquired or potential buyers, has historically been a long and laborious process, requiring many hours of research. A number of tools have recently been developed to collect and analyse data.
3. Improving due diligence processes. This essential but often tedious stage (involving detailed analysis of the target company’s financial and legal data) also benefits from the contribution of AI. Document intelligence tools can automatically sort, analyse and extract information from large quantities of documents. Legal and financial risks can thus be identified more quickly, reducing human error and speeding up the process.
4. Other tools. It’s a safe bet that artificial intelligence will find other applications in the M&A field: financial analysis, company valuation, drafting legal documents such as letters of intent or share purchase agreements, and much more.

A business that needs to be reinvented

At FB Transmission, we are already using some AI software on a daily basis: taking notes, drafting presentations, automatically filling in our client monitoring software, etc. While the use of these tools is still in its infancy, it is certain that generative AI, enabling massive analysis of data and documents, will have a growing impact on our profession. M&A professionals need to reinvent themselves if they are to continue to play a key role in the complex process of mergers and acquisitions. By mastering these new technological tools and being discerning in their interpretation of the results provided, they can significantly increase the relevance of their work.

People at the heart of our business

The development of soft skills such as empathy and communication is becoming increasingly essential. Generative AI strengthens expertise and allows teams to focus on interpreting results and making decisions, where strategic analysis plays a decisive role. What’s more, the human element remains irreplaceable in complex negotiations, assessing cultural aspects and managing relationships: all intangible factors that emerge more from emotional intelligence than from AI.

Ultimately, human aspects and adaptability will play an increasingly important role in M&A transactions. Rather than seeing it as a threat to the profession, we believe that AI is a powerful lever for strengthening the skills of M&A experts, provided it is used wisely.

Tanguy della Faille                                                                                    Arnaud Durant

Managing Partner – FB Transmission                                                   M&A Consultant – FB Transmission

tanguy.della.faille@fb-transmission.com                                            arnaud.durant@fb-transmission.com