Key Takeaways: AI and the Future of M&A
The M&A landscape is evolving rapidly, with AI and data-driven technologies reshaping traditional processes. At September’s Insider Round Table which explored Data and AI in Deals and Acquisitions, Mark Wilson shared how AI is fundamentally changing the role of M&A advisors and highlighted some of the ways that Headpoint is embracing these advancements.
AI Will Separate Leading Advisors from the Rest
AI and technology are revolutionising M&A by automating many routine tasks. However, AI will soon make the traditional, labour-intensive aspects of deal execution a basic expectation, rather than a differentiator. With AI automating much of the operational workflow, advisors that rely on the ‘process machine’ will be flushed out and the real mark of an outstanding advisor will be the quality of advice they offer.
“Firms that rely solely on running processes will be left behind, as AI will make those processes ubiquitous. At Headpoint, we welcome this challenge because we are providing class-leading advisory services, not just pushing deals through a machine.”
The Overlooked Power of AI in Deal Origination
While much of the discussion at the event centred on how AI can improve productivity, accuracy, and efficiency in deal processes such as due diligence, deal origination is an underappreciated area where AI can create real value. AI is already being used by Headpoint to identify and assess potential deals early in the pipeline, helping us deliver more value to our clients.
“Rather than focusing just on back-end processes where AI can boost efficiency, we see the real prize lying in deal origination. AI helps us identify opportunities more quickly and accurately, allowing us to identify new client opportunities and support our clients in building acquisition pipelines.”
UK has opportunity in DealTech Innovation
The DealTech category continues to develop and for the reasons above will become fundamental to many advisory firms and investors. We feel it’s a real disappointment that UK firms are not yet leading innovation in this area.
“Many of the technology solutions available to UK advisors are sourced from overseas firms, from suppliers in the Netherlands and the USA. We hope that UK firms have not yet missed the opportunity for innovation here.”
In addition to Mark’s insights, other industry leaders are recognising AI’s potential across various stages of the M&A lifecycle:
Increased Efficiency: AI-driven platforms are already managing much of the repetitive work in deal processes, such as document review, due diligence, and resource allocation, freeing up professionals to focus on higher-value activities.
Reskilling Over Redundancy: AI is not set to replace people, but it will shift their roles. Reskilling employees to utilise these technologies will be crucial for the future of M&A advisory firms.
Data Quality as a Barrier: As AI tools become more advanced, their use in due diligence is growing, with predictions that AI could soon handle 80% of these tasks. However, businesses must focus on improving their data quality to take full advantage of AI-driven processes.
AI and Deal Flow Acceleration: AI has the potential to speed up M&A transactions by quickly analysing data, identifying potential buyers, and generating reports. However, human judgement remains crucial for final decisions, especially in assessing management teams or cultural fit.
The Need for a Clear AI Strategy: Organisations must develop a clear vision for how AI will be integrated into their M&A processes. It’s not enough to adopt AI casually – firms need a strategy that aligns with their broader goals.
While AI holds immense potential, the consensus is clear: technology cannot replace the advisory expertise and interpersonal skills that are critical to M&A success. The true value lies in enhancing these human elements. Headpoint is not just keeping pace with technological advancements, but is at the forefront, leveraging AI strategically in deal origination and delivering class-leading advice that goes far beyond a conventional, process-driven approach.
For more information on how AI and emerging technologies are reshaping the M&A landscape, and to explore how these changes could impact the value of your business, exit or investment opportunities, contact us or complete the form below:
