Take Five #165: AI-driven, human-led financial due diligence method optimizes process, shrinks timeline, and more
Top five must-reads this week in the world of SMB acquisitions and operations
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Take Five #165: AI-driven, human-led financial due diligence method optimizes process, shrinks timeline, and more
1. 10 Cash KPIs
2. “How SBA debt and personal guarantees warp risk tolerance in self-funded search”
3. AI-driven, human-led financial due diligence method optimizes process, shrinks timeline “20 times faster with 30-50% higher accuracy compared to traditional methods”
Using Technology for Financial Due Diligence
After diving into the processes of verifying revenues and expenses, it's essential to understand how technology has reshaped financial due diligence. Advanced tools and platforms have revolutionized this once time-consuming effort. Tasks that used to require months of manual labor can now be completed in weeks with greater precision and lower costs, fundamentally changing how businesses approach acquisitions and investments.
Role of Technology in Due Diligence
Today, artificial intelligence (AI) and automation are at the heart of modern due diligence. These technologies handle vast amounts of financial data, streamlining tasks like document review and data extraction. AI-powered tools can sift through contracts, financial statements, and corporate records, cutting manual work by as much as 80%. This frees up financial professionals to focus on strategic analysis rather than repetitive tasks.
Cloud-based platforms add another layer of efficiency by offering remote access to documents and real-time analysis. This feature is especially valuable for teams working across different locations, enabling seamless collaboration.
AI-driven analytics also improve the accuracy and speed of data reviews. Algorithms can uncover patterns and anomalies in financial data that might otherwise go unnoticed. Considering that due diligence costs for mergers and acquisitions (M&A) typically range from 0.5% to 2% of the total deal value, these tools can make a noticeable impact on cost savings.
4. Event: Southeast Entrepreneurship Through Acquisition (SEETA) Conference | Charlottesville, VA
Date: September 5-6, 2025
Where: UVA Darden School of Business, Charlottesville, VA
5. Acquiring Minds Interview: How a mindset shift helped one searcher go from stuck to closed in 4 months
Grania Michel spent a year and a half searching for the “perfect” business (quietly, cautiously, and with not much to show for it). She rarely sent LOIs, kept her search mostly to herself, and got stuck in her own head. Then a friend called her out: If you had to close in four months, what would you do differently? That question changed everything. Two weeks later, she was under LOI. In this episode, Grania shares how that mindset shift helped her land Associated Photo & Imaging, plus how she navigated deal structure, teamed up with a GM, and handled the day-one curveballs.
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