By: Amanda Reseburg
The introduction of newer artificial intelligence models has transformed processes across most industries, influencing how workers complete administrative tasks, analyze data, perform customer service duties, and structure strategies. Innovative advisory models have also entered the mergers and acquisitions (M&A) space, driven by AI and spearheaded by companies at the forefront of the M&A industry, such as Embarc Advisors.
Led by CEO and founding partner Jay Jung, Embarc Advisors is at the cutting edge of the M&A space by leveraging generative AI to make informed, efficient decisions and maximize client value through a forward-thinking hourly fee structure. Here, we explore how they are thriving amid the rise of AI use and how other M&A executives can follow suit.
The Role of AI Tools in M&A: Due Diligence, Valuations, Compliance, Targeting Companies, and Informed Decisions
Over the past few years, AI has evolved from being a conversation piece and a hyped-up “maybe” to a certainty in business — a technology that has proven to be a practical reality for many executives and analysts working in the M&A sector. Executives who have leveraged AI, such as Jung, can be more efficient, gain deeper market insights for informed decisions, receive real-time analytics, and explore new target opportunities for both buyers and sellers.
The cornerstone of AI’s list of benefits, however, has to be the speed at which it performs tasks. “What once took analysts hours, days, or even months can now be performed in a matter of minutes,” Jung explains.
Rather than spending weeks on time-consuming due diligence tasks in market research, risk analysis, or other administrative processes, AI has helped Embarc and other M&A firms make smarter, faster decisions throughout the due diligence process. In addition, junior analysts once tasked with taking on these administrative tasks are now free to work on projects that move the needle towards a closed deal.
Using AI Systems to Transform the Deal Cycle
At Embarc Advisors, Jung and his team have leveraged ChatGPT Pro to automate tasks such as researching potential buyers. Embarc invests in a monthly ChatGPT Pro subscription for all its employees, providing them with access to the full suite of tools.
“AI can transform M&A through making the deal cycle more efficient,” Jung says. He points to one example where his firm was hired by a relatively small IT venture out of Denver that was looking for a buyer. With a revenue of less than $30 million, Jung’s team of analysts needed to be very targeted and specific when seeking the perfect buyer for the deal. The team fed data from proprietary databases as well as internal data into ChatGPT, instructing the program to find firms in the IT sector that were active in Colorado and the surrounding states, and to draft profiles of the potential buyers it found.
“It’s remarkably fast,” Jung notes, “and the results are better than what the majority of junior analysts in M&A can do.”
Indeed, AI’s capability to automate critical tasks not only saves M&A firms like Embarc time but also improves the valuation accuracy of companies seeking deals as they are negotiated, leading to satisfactory closings for all parties.
Expert M&A Strategy With AI Technologies
Embarc Advisors has mastered a blend of traditional expertise with a mindful embrace of modern technology. As a result, the company’s team of advisors and executives can deliver top-tier insights through a blend of know-how, connections, and automation.
“With AI, we have been able to identify strategic buyers, efficiently close negotiations, and achieve optimum deal value for our clients, all while preserving the customer connection and protecting data privacy,” says Jung.
With real-world expertise blended with AI, Embarc’s clients are receiving the best of what technology can offer when managed by expert human intervention.
Hourly Fee Structures and an Ai-Driven Approach Used in M&A Provide Maximum Value
Embarc Advisors has been disruptive in the M&A industry for another reason as well: its application of hourly fee structures. Unlike traditional percentage-based success fees, Embarc’s advisors are paid an hourly fee, similar to how attorneys are compensated. This hourly fee structure allows the firm to better align incentives, remain transparent about costs, and approach deals with greater flexibility and fairness.
“Pairing the hourly model with AI-enabled workflows enables us to maximize returns for our clients,” says Jung. “Insights are delivered faster, deals are brought to the closing table more efficiently, and we are able to scale advisory support throughout the transaction process.”
A Message to Ceos: AI Is Revolutionizing the Future of Adaptability and Transparency
For CEOs and other senior leaders in the M&A space, the future of the industry is clear: adaptability and transparency will lead the way for clients and advisory firms. AI is emerging as a transformative ally supporting both these mindsets, allowing for faster decisions, deeper insights, and more overall success for buyers, sellers, and firms.
With the evolution of fee structures and AI leveling the M&A playing field, executives are rethinking traditional approaches and processes. These leaders are leaving the door open for progress amid a climate of rapid technological change.
The next era of deal-making and strategizing for M&A firms is being led by AI. Embarc Advisors is demonstrating how, by embracing innovations in machine learning and skillfully applying years of human expertise to the M&A process, they can position themselves for ongoing success.
Disclaimer: The information provided in this article is for informational and educational purposes only and does not constitute financial, investment, or legal advice. Readers should consult with qualified professionals before making any business, investment, or strategic decisions. The claims made about AI applications and outcomes in M&A are based on the experiences of the company featured and are not guaranteed results.
