How dealmakers should be using AI
We’ve all been there. 5pm hits and you’re watching your colleagues heading out to happy hour, but the boss has asked for a last-minute progress update on the client’s M&A deal. Good night out? Out of the question.
But what if you could predict – with unmatched accuracy – how the deal was progressing, in a matter of minutes? If you had the foresight to direct your clients with certainty toward a successful transaction? Or better still, the question was never asked because they had automated reporting at their fingertips.
Our AI tech was born out of a need to make life easier for those in a deal. After learning from tens of thousands of deals, we knew there had to be a correlation between data room activity and the likelihood of an offer during an M&A transaction – so we put it to the test. The result? The Bidder Engagement Score.
Get to know our AI: Bidder Engagement Score
The Bidder Engagement Score is a machine learning algorithm trained and tested on 35,000+ deals. It uses artificial intelligence to tell you who is engaged, who’s not and why, by aligning your bidders’ behaviour to patterns of successful and engaged bidders across 57 separate attributes. (To learn more about the attributes and logic behind the score, download the tech brief here.)
To use it is simple. Once in the transaction room, go to your Settings and ensure your transaction type is merger, acquisition, divestment or insolvency. Add in your guests separately, and they will automatically be grouped into individual bidding teams.
At the beginning of every week, an email is automatically sent with your Bidder Engagement Score. As it’s directed to your inbox, it’s accessible on mobile, tablet – anywhere on the go. Uncover insights that support your gut instinct with objective data, so you can base your next move on real information – whether it’s challenging their interest or removing them from the deal entirely.
Here’s how it will transform your deal strategy
- See who is interested. Get a pre-warning as to those who are likely to drop out of the process. Kick out the time wasters and respond rapidly to falls in interest.
- Maintain competitive tension. The best outcomes occur when there is competitive tension at the end of the due diligence process. With the Bidder Engagement score, you’ll have a clear indication of when you will need to pull other parties into a transaction to maintain competitive tension.
- Make earlier, more accurate predictions. Make informed decisions during your transaction based on real data. You’ll be able to accurately predict bidder outcomes, with 97% accuracy by day 7. That’s better than a human analyst – and much, much faster.
- Get to the ‘why’ behind the data faster. The score eliminates the need for manual collection and reporting of isolated or subjective statistics, saving you time and expense.
Less gambling, more fact
AI-driven insights are as close as you’ll get to seeing the future. They allow you to accurately forecast future trends ahead of time, leading to better decision making and strategies that can’t help but be successful. And that’s just the tip of what AI technology can do for dealmakers.
To see what a transaction looks like when it’s powered by the Bidder Engagement Score and our other world first AI deal tools, download our AI-powered deal guide here.