Link to latest update below:
Gen AI in M&A
The Team @ McKinsey & Co. advises on the following steps to be taken to integrate Gen AI into M&A processes and expertise:
- Assess current M&A processes, capabilities, and tools to identify the workflows (such as deal speed, insights, and integration) where automation could be most helpful. For example, if the company is in a market with players of many sizes scattered across geographies, gen AI might have the greatest impact on deal scanning; however, for companies that belong to a narrow sector where talent or intellectual property is crucial, executing a successful people or operational integration may be more important.
- Build AI fluency across M&A teams. Encourage teams to explore existing tools and request live demonstrations where possible. Organizations can also evaluate which capabilities can be developed internally by leveraging existing LLMs.
- Secure executive sponsorship. Establish clear ownership and a senior champion to guide the gen AI agenda.
- Formalize M&A playbooks. Analyze and document the company's M&A philosophy. For example, what percentage of value capture does the company typically seek within the first six months of an acquisition? Do the same for the company's methodology. For example, does the talent selection process in an integration differ from the usual process for identifying talent?
- Develop a one- to two-year road map for making gen AI part of the company's M&A operations. A wait-and-see approach risks falling behind in the process; realizing the benefits of gen AI requires deliberate planning, change management, and sustained commitment.
------------------------------
Todor Kostov
Director
------------------------------