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DealRoom is thrilled to introduce our first embedded AI functionality: AI-Powered Document Analysis. This beta functionality drives M&A due diligence efficiency, providing M&A teams, financial analysts, legal teams, and other functional leads with a powerful solution to streamline their workflows and enhance decision-making.
The Problem with Traditional M&A Due Diligence
M&A is a critical strategy for company growth, yet it's often handicapped by outdated and inefficient tools. Traditional due diligence involves sifting through mountains of documents under tight deadlines, a process that is both time-consuming and prone to errors. This cumbersome method can lead to overlooked risks and delays, hampering the deal process and putting successful outcomes at risk.
The Perplexing Topic of AI
If you’re like many of the M&A professionals we speak to, you might be curious about using AI to enhance your M&A processes but unsure how to begin. Many teams test out ChatGPT to start. This is a great way to dip your toes into the AI wave but, ChatGPT isn’t purpose built for M&A teams and requires AI expertise to really see benefits.
Introducing AI-Powered Document Scanning from DealRoom
That is exactly why we are doubling down on infusing AI into our platform here at DealRoom. Our goal is to empower M&A teams to optimize the way they do M&A and today, that means harnessing the power of AI.
Our new beta functionality, AI-powered document analysis, marks a significant leap forward. Built seamlessly into the DealRoom M&A Optimization platform, this feature is powered by OpenAI, the world’s most powerful Large Language Model, and customized for M&A to reduce the manual time and effort of extracting key information from documents and increase accuracy of risk identification. In turn, empowering teams to capture time savings and set themselves up for smart investments that lead to value realization.
This document scanning co-pilot, accompanied by a library of prompt templates that can be created, saved, and shared across an organization, enables users to embrace AI to analyze and extract key information from documents.
Users can upload unlimited documents to be scanned and analyzed using M&A prompts. Then, users can create their own prompt templates based on individual use cases and personas. And lastly, save those templates to a library and share them across their organization.
Practical Use Cases
An HR team member seeking to assess potential acquisition targets could create a custom prompt template with prompts focusing on various aspects of employee analysis, including:
- Provide a detailed description of all expenses and termination fees associated with employees.
- Outline the conditions and obligations of each party involved in effecting the merger.
After creating the custom prompt template, the HR team member can save it for future use and apply it whenever a new acquisition target undergoes the diligence process.
A financial analyst can create a custom prompt template focusing on financial metrics and review contacts relevant to acquisition targets. This template could include prompts such as:
- Extract indemnification and governing law clauses for comprehensive analysis.
- Extract change of control provisions to assess their implications for the deal structure
Once the custom prompt template is created, the financial analyst can save it for future use, ensuring efficient extraction of key insights during due diligence and informed decision-making for potential acquisitions.
Unlock the Value of AI for M&A
Now businesses can increase their due diligence efficiency and make more accurate investment decisions with AI-powered document analysis. In short, M&A teams, specifically those who focus on the due diligence process, can expect two main benefits:
- Increased Efficiency: Dramatically cut down the hours spent on manual document analysis, freeing up time for strategic decision-making and other core activities.
- Improved Risk Identification: By eliminating human errors, our AI-powered analysis ensures a higher accuracy in identifying potential risks, leading to smarter, more informed investment decisions.
And, Unlike ChatGPT, this functionality is purpose-built for M&A teams which means you can expect:
- Enhanced Data Security: Our AI operates in a secure environment, prioritizing the confidentiality of sensitive documents to ensure your information remains protected.
- Evidence-Based Results: Every analysis includes clear references, so you know exactly where each piece of information originated.
- User-Friendly Design: No need for prompt engineering skills or AI expertise; our functionality is built with best practices in M&A, offering an intuitive experience for all users.
- Continual Improvements: Our dedicated AI engineering team constantly evolves our AI to meet the specific demands of the M&A sector.
This functionality is currently available for beta testing by DealRoom customers at no additional cost. If you are a DealRoom customer and want to test this functionality, please reach out directly to your customer success manager. Following the beta testing period this functionality will be available to all DealRoom customers at an additional cost.
A New Era for M&A
The launch of our AI-powered document analysis marks a significant milestone in DealRoom’s journey to empower M&A teams to optimize traditional, inefficient M&A processes. This functionality not only enhances the efficiency and accuracy of the due diligence process but also enables ALL M&A professionals to tap into the power of AI, regardless of their expertise or background.
Want to learn more about how to use AI in your M&A practice? Join DealRoom CEO, Kison Patel, for our latest AI M&A Teardown session on April 5th at 11 am EST. This series is designed to empower M&A professionals with the knowledge and tools to leverage AI in transforming deal-making processes. Register here.
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