Bateo Insights

In the context of corporate acquisitions, as you can imagine, artificial intelligence does not increase an exit multiple simply because a company says it uses AI.  What increases an exit multiple is clear financial causality and defensible strategic differentiation. For corporate sellers, it’s important not to merely mention the use of AI in a CIM or management presentation, but rather, how a company’s use of artificial intelligence improves enterprise value. For example: • r

Three years ago, “AI strategy” in an acquisition pitch deck was optional. Today , it directly impacts purchase price. Not because it sounds sophisticated, but because it changes financial performance. When a company uses AI to: • increase revenue through dynamic pricing or AI-assisted prospecting • reduce labor or operational costs through automation • improve forecasting and inventory management • enhance customer retention through personalization …it often produces measur

Although artificial intelligence and machine learning date back to the 1950s, we’re in the industry’s infancy with respect to mainstream adoption, whether consumer or enterprise.  Nevertheless, we’re already seeing how the use of AI applications in a company’s business affects its price and valuation for corporate acquisition or other purposes, whether a family-owned business, a corporate strategic divesting a business line, or a private equity sponsor selling a portfolio com

Introduction   There’s not a tech headline these days that doesn’t mention artificial intelligence or that jobs are in danger of being replaced by robots layered with AI.  The current AI boom is reminiscent of the late ’90s internet craze, you almost can’t go anywhere without bumping into the founder of an AI startup.  Much of it can be somewhat overwhelming at times; however, when business figures such as Elon Musk, Sundar Pichai, Larry Ellison, Robert Smith and Steve Schwar