How do potential buyers view our use of AI during due diligence, and what can we do now to ensure our AI strategy increases our valuation?

Question

Tyler Smith · Accepted Answer

Buyers do not pay premium multiples for generic AI tools that anyone can subscribe to. They look for how AI is integrated into your operations to drive predictable, scalable, and highly profitable revenue. During due diligence, a sophisticated buyer will analyze your historical EBITDA margins and your operational scalability.

To ensure your AI strategy increases your valuation, focus on two areas. First, document how AI has improved your key financial metrics, such as lowering your customer acquisition cost or increasing your client lifetime value. Show a clear correlation between your AI implementations and your margin expansion.

Second, ensure your AI infrastructure is clean and auditable. If you are using custom models or APIs, you must own the intellectual property rights and have clear data security policies in place. Buyers are highly sensitive to legal and security risks. If your AI usage is built on a messy foundation of shadow IT and unvetted public tools, it will trigger a discount or derail the deal entirely. Use your quarterly Rocks to audit your technology stack, ensuring everything is properly licensed, secure, and fully aligned with your documented processes. This proves to buyers that your business is a modern, low-risk, high-margin asset.