Beware claims that artificial intelligence (AI) can sell your tech business. While some claim chatbots are a cure-all for preparing a valuation, writing an executive summary, building a buyers list and structuring a deal, this is naïve thinking.

Your software or IT company’s value isn’t fixed to the financial reports you might unwisely feed to a generative AI chatbot. Your business holds a story that represents future success to buyers, and you need merger and acquisition (M&A) experts on your side to properly run a global buyer search.

The next time you’re tempted to use AI technology in the sale of your software or IT company, remember the following six cautions.

  1. AI data is too outdated for comparable company analysis. The public data that powers chatbots can be years old, but even months old financial and deal data is useless for a valuation.  The most current data is often available only from expensive private data services or tech investment banks, like Corum, which is not public.  
  2. AI lacks private buyer information. Buyers don’t want their competitors to know their deal specifics, so they disclose minimum or no data. And even when a chatbot might identify a potential buyer for your company, it does not know who to contact within the firm – and it certainly won’t have a personal relationship with that contact.
  3. AI writing is too bland to market your business. You need an extraordinary executive summary to move a buyer to action. A professional M&A writer will not only craft armor piercing soundbites that grab buyers’ attention but also map your business to the disruptive trends that drive sales today.
  4. AI doesn’t understand the disruptive trends in the tech M&A market. Positioning your company alongside the top 10 disruptive tech trends makes your potential unmistakable for buyers. The complex strategizing required to ride the wave of growth is beyond today’s AI capabilities.
  5. AI doesn’t know your business. While a chatbot might have access to your publicly available, historical information, it doesn’t understand your tax and estate issues, health, and long-term family needs. An experienced M&A professional can negotiate a transaction structure that best fits your goals. They have the transactional experience to provide guidance on issues such as stock or asset sales, earn-outs, employment agreements and assumption of debt.
  6. AI bots aren’t secure. Many of the companies providing AI chatbots also run major social media platforms, cloud services, and communication networks. Once your confidential information, financials, and plans are in an AI database, you can’t protect that information from misuse or data breaches.

The bottom line

Don’t rely on AI chatbots for the most important transaction of your life. Chatbots’ outdated financial data, lack of personal business connections, forgettable writing and insecure data make it a dangerous choice when running an M&A process.

Instead, use professionals who know the buyers, have a successful transaction track record and treat the security and confidentiality of your business as if it were their own. Contact Corum to find out how to get an optimal outcome in selling your business. Our proven process will put your business in front of the global buyers, and our experienced team will help you get the best price and structure for your M&A deal.


To learn more about AI’s transformation of the M&A landscape, view our most popular webcast: AI and the New M&A Playbook.