tyler-smith.com · Questions & Answers

We want to build an AI-driven service offering to boost our business valuation before we exit in three years. If our technology is just a wrapper around OpenAI, will a sophisticated buyer see right through it and discount our enterprise value?

Many owners try to inflate their company's value before an exit by quickly building an AI tool that is actually just a thin wrapper around a public model like OpenAI. Sophisticated buyers and their technical due diligence teams will see right through this. They will not pay a premium multiple for technology that any competitor can replicate in a weekend. To build real, defensible value, you must focus on what makes your application unique. This means combining the AI model with proprietary data that only your company possesses, or deeply integrating the tool into your customer's daily workflow so that the switching costs are incredibly high. If you are preparing for an exit, work with your leadership team during your annual planning session to evaluate your technology stack. Ensure your IP is defensible and directly tied to your core business processes. By focusing on proprietary workflows and unique data loops rather than basic wrappers, you create genuine enterprise value that will withstand rigorous buyer scrutiny and command a premium price.

Category: AI & Business Strategy

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