Introduction of AI tools in M&A

A019 Sachidanand Kandloor, MBA Law 2nd Year

Respected sir,
Pursuant to our discussion today morning regarding research project I would
like to mention the points on which I plan to research for the purpose of the
dissertation.
Regulation compliance and due diligence:
The first section is concerned with preserving value. A requirement for
prospective investors and purchasers in an M&A deal is a thorough examination
of the acquisition target's quality of reporting across financial parameters,
technology, and environment, social, and governance (ESG) compliance.
Automation of the review process with a reduction in human mistake made
possible by AI-powered solutions can enable increased corporate supervision
and regulatory compliance.
Reduction in execution time:
relates to risks from elongated deal timelines that can impact the probability of
deal completion. Approximately one-third of agreements fail because of
protracted execution times, which can be caused by a variety of issues,
including internal misalignment, lack of visibility and ownership, a small
number of contracts, poor communication, and external variables like market
circumstances. These could have a large financial impact on the businesses
involved as well as a wide-ranging effect on other stakeholders including
employees, suppliers, and shareholders.
While external issues could be challenging to manage, AI solutions can assist in
addressing crucial deal timeline components affected by internal factors. One
such instance involves the lengthy, weeks- or months-long review of a large
number of contracts, which can generally number in the hundreds or thousands.
By cutting review time by up to 90%, cognitive analytics can help speed up
processes overall and free up time for other crucial pre-closing tasks.