Published on
March 9, 2026
How to Harness AI to Streamline M&A Workflows
Discover how AI is revolutionizing M&A by improving due diligence, sourcing buyers, and enhancing efficiency in deal workflows.
Artificial Intelligence (AI) is transforming industries at an unprecedented pace, and mergers and acquisitions (M&A) are no exception. In a recent discussion on the application of AI in M&A, Matt Bane, co-founder of Liquid and an experienced investment banker, provided valuable insights into how AI is reshaping workflows, enhancing efficiency, and opening new possibilities in the dealmaking process. This article distills key takeaways from that conversation and offers actionable insights for mid-market entrepreneurs and company founders looking to leverage AI in their businesses.
The Current State of AI in M&A
The conversation began with an exploration of how attitudes toward AI in M&A have evolved over the past few years. In 2024, AI was often seen as a buzzword, with skeptics doubting its ability to have a significant impact on M&A processes. Fast forward to today, and AI is no longer a mere trend; it’s an essential tool for forward-thinking firms. However, adoption remains slow within the industry, largely due to concerns around security, lack of understanding about real-world use cases, and the mistaken belief that dabbling with AI-powered consumer tools like ChatGPT equates to fully harnessing its power.
Why is AI Adoption Slow?
- Lack of Awareness: Many firms are unaware of how AI can be applied beyond basic tasks like planning trips or simple automation.
- Fear of Security Risks: Concerns around the privacy of sensitive data - such as client documents - are major barriers to adoption.
- Initial Hesitation: Firms often tread cautiously, starting with small implementations to "test the waters" before committing to a broader AI strategy.
Despite these barriers, businesses that overcome these challenges and embrace AI fully are reaping transformative benefits.
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Key Applications of AI in M&A Workflows
Matt Bane outlined several areas where AI is actively enhancing M&A workflows, offering firms unprecedented efficiency and scalability. Below are the top applications that mid-market businesses should know about:
1. Streamlining Due Diligence
The due diligence process, traditionally tedious and labor-intensive, can be radically improved with AI. Tools like Liquid automate the analysis of data rooms, eliminating duplication and enabling instant access to critical insights. For example:
- AI can surface trends like seasonality in a company's revenue by analyzing financial documents and contracts in seconds, rather than hours.
- It reduces manual back-and-forth among parties, freeing up advisors to focus on higher-value tasks like client strategy.
As Matt noted, AI can improve due diligence efficiency by 50–60%, saving crucial time and resources.
2. Enhancing Buyer and Seller Sourcing
AI expands the reach of advisors and sellers by identifying potential buyers or sellers far beyond traditional networks. While personal relationships remain a cornerstone of dealmaking, AI supplements this by:
- Analyzing market signals to identify companies likely to buy or sell.
- Scaling outreach, helping advisors engage with multiple parties simultaneously, creating competitive tension and increasing deal value.
Firms using AI for sourcing have reportedly grown their buyer pools by 3–4x.
3. Improving Financial Modeling
AI tools such as Claude create precise financial models, including discounted cash flows (DCFs) and other valuation analyses, with remarkable speed and accuracy. By automating these tasks, advisors can:
- Generate models in a fraction of the time it would take manually.
- Focus on interpreting the results and providing meaningful commercial insights to clients.
4. Reducing Workflow Friction
AI eliminates inefficiencies caused by repetitive or duplicative tasks. For instance:
- It automatically detects and removes duplicate buyer inquiries during the sell-side process.
- Advisors no longer need to manually sift through data rooms or answer the same questions multiple times.
The result? More streamlined workflows and faster deal closures.
Addressing Security Concerns in AI Adoption
One of the biggest barriers to widespread AI adoption in M&A is the concern over data security. Matt emphasized the importance of choosing enterprise-grade AI tools designed specifically for M&A workflows. Unlike consumer-grade tools like ChatGPT, enterprise tools ensure:
- Data Confidentiality: Information remains siloed either at the deal level or firm level, ensuring no cross-pollination of sensitive data.
- Enterprise-Grade Security: Providers adhere to strict certifications, such as ISO standards and GDPR compliance.
- Transparency: Firms should carefully review contracts with AI providers to understand how data is stored, used, and protected.
Consolidating AI tools within a single platform, rather than relying on a patchwork of solutions, can also help mitigate security risks while improving transparency.
How AI Enhances, Not Replaces, Advisors
A recurring theme in the discussion was the idea that AI is a magnifier - it amplifies existing skills and expertise rather than replacing professionals. AI handles the grunt work, allowing advisors to:
- Spend more time on high-value activities like negotiating deals and managing relationships.
- Focus on providing strategic, client-centered advice - something AI cannot replicate.
As Matt succinctly put it, "Great brokers and bankers know that people want to get a deal done. AI can free you up to focus on that."
For advisors concerned about being "replaced" by AI, the message is clear: embrace AI as a tool to enhance your capabilities and deliver even greater value to clients.
Getting Started with AI: Practical Tips for Mid-Market Businesses
For firms new to AI, starting small and strategically is key. Here’s how to get started effectively:
- Begin with Familiar Processes: Use AI to enhance tools and workflows you’re already familiar with, such as data rooms or email assistants.
- Choose Enterprise-Grade Tools: Select AI solutions specifically designed for M&A, ensuring data security and regulatory compliance.
- Invest in Education: Train yourself and your team on AI’s capabilities. Understanding what it can - and cannot - do will help you use it effectively.
- Consolidate Tools: Limit the number of AI tools you use to minimize security risks and ensure consistency across your organization.
- Focus on Relationships: Use the time freed up by AI to deepen your relationships with clients and partners, which remain the bedrock of successful deals.
Key Takeaways
- AI Is Here to Stay: M&A firms that embrace AI now stand to gain a significant competitive edge.
- Improved Efficiency: AI can reduce due diligence time by 50–60%, eliminate repetitive tasks, and streamline workflows.
- Enhanced Deal Sourcing: AI expands buyer pools significantly, increasing competitive tension and deal value.
- Security Matters: Always use enterprise-grade tools and closely review contracts to ensure data confidentiality.
- AI Magnifies Expertise: It complements advisors’ skills by automating mundane tasks and allowing them to focus on high-value activities.
- Start Small: Begin with AI-powered versions of tools you already use and gradually explore new applications.
Conclusion
Artificial intelligence is revolutionizing how M&A workflows operate, offering mid-market businesses a rare opportunity to leap ahead of the competition. The key is to approach AI thoughtfully - choosing the right tools, addressing security concerns, and focusing on its ability to enhance human expertise rather than replace it. As AI continues to evolve, those who embrace its capabilities today will be best positioned to thrive in the years to come. Whether you're sourcing deals, conducting due diligence, or advising clients, AI offers a powerful way to work smarter, not harder.
Source: "M&A Access - Harnessing AI in Mergers and Acquisitions" - Alliance of Merger and Acquisition Advisors, YouTube, Feb 11, 2026 - https://www.youtube.com/watch?v=ii1CGz1jdf8
