AI is changing how companies do mergers and acquisitions

In short: AI tools are becoming a regular part of how mergers and acquisitions are found, evaluated, and negotiated.

What's going on

Companies, banks, and investors are using AI more often during mergers and acquisitions, also called M&A (when one company buys another or two companies combine). The goal is to move faster through the early steps, like searching for possible targets and reviewing large piles of documents.

AI can scan financial reports, contracts, emails, and customer data in a way that is closer to a very fast assistant than a human team reading everything line by line. This can change what looks attractive in a deal. The Financial Times points to a shift where “unloved” companies can suddenly look appealing, because buyers can use data to spot hidden strengths or fixable problems.

The same trend can also support bigger deals. When more of the research work is automated, teams can look at more opportunities and build a stronger case for large transactions. Private equity, often shortened to PE (investment firms that buy companies, improve them, then sell them later), is also described as finding a new “gold mine” as AI helps identify targets and value more quickly.

What to watch

Speed is useful, but it can also create pressure to make decisions before all risks are fully understood. Watch for whether regulators and investors push for clearer rules on how AI is used in deal research, and for how often buyers later discover issues that AI did not flag.

Source: Financial Times