Revolutionizing Transaction Diligence With Gen AI

In the fast-paced world of private market transactions, firms have traditionally relied on human expertise and experience to drive value creation.

What if a process that used to take weeks, could take hours?

THE CHALLENGE

Due diligence helps investors assess the value and market dynamics of target assets.

This process involves analyzing financial statements, conducting market research, and evaluating the competitive landscape. By understanding the risks involved, investors can make informed decisions and mitigate potential losses; however, the due diligence process is complex and laborious. The sheer volume of information can be overwhelming. Reviewing contracts with suppliers, tech providers and clients, deciphering intricate balance sheets and income statements laden with notes and addendums is no small feat. Moreover, critical insights or challenges are often hidden within these extensive documents, some that even the target company's management may not be fully aware of or that they may not have fully disclosed. As a result, it can take weeks to review reams of such details – about customers, suppliers, tech infrastructure, intangible assets, prior financings, etc. 

WHAT IF DILIGENCE WAS EASIER?

What if Gen AI could crunch through prior financing related narratives much as ChatGPT makes short shrift of millions of internet content streams?

What if a process that used to take weeks, could take hours? Here is where the game-changing power of Gen AI comes into play. Promising to streamline and supercharge the due diligence process, Gen AI can compress this data-intensive analysis and review by adapting and fine-tuning bots to ingest this information and cut through the noise to salient features.

But, it’s more than that.

Gen AI's capabilities go beyond simple data extraction. It analyzes the materials provided and returns with vital questions, insightful observations, and concerns. It can also be trained to scour larger market and geopolitical trends that can influence company and investment performance and correlate it to a target asset’s underlying pricing dynamics. This speeds up the due diligence process and brings light to potential issues that might have otherwise gone unnoticed. It's like having an astute team of always-on analysts at your disposal. Gen AI's potential grows exponentially as it analyzes thousands or even tens of thousands of PE deals. Over time, it learns from each deal, forming reasoned correlations that can uncover trends and patterns. This invaluable capability allows investors to make data-driven decisions and allocate their resources more efficiently across a variety of market segments. Of course, the same approach can also be used by companies, agents, lawyers, and other deal influencers to understand how to enhance their strategic leverage in complex negotiations.

STUMBLING BLOCK

Most of these advantages are readily apparent to savvy financiers – whether they are private equity groups, venture capitalists, M&A law firms, IP hedge funds, debt funds, and project capital developers.

Many of the prime targets of these kinds of intermediaries are also aware of their own unmet needs around more intelligence about the factors that may influence the terms of a deal. However, all these groups are understandably skittish of offering up their data to public domain Large Language Models (LLMs) that do not allow for privacy protections and are not immune to tampering and hysterical irrationality. Consequently, this lodestone of value remains untapped.

Numerous emerging and established players claim to offer products that address this value and offer roadmaps that will offer some measure of confidentiality protection as they realize products. However, such offerings are not easily configurable and helping financial services firms and operating companies who are not AI focused achieve optimal configurations can be challenging. Furthermore, their offerings do not have the level of security and privacy protection that managing sensitive financial, taxation, customer, supplier, and employee details will require.

ENTER VERYVERSE

Our mission is to make LLMs usable and useful in business settings.

LLMs have transformative potential, but are insufficient for business apps. Their strength is that they know (almost) everything until they don’t. What it doesn’t know it makes up — affectionately known as hallucinations. How do we solve for this? We prioritize the privacy and security of your data and IP above all else. We’ve developed patented tech to ensure your data and IP remains private, even when it’s being used to train AI models.

With Veryverse, you can realize unmatched privacy, confidentiality, and security through our responsible AI platform. Our pre-configured solutions can be customized into a turn-key expert analyst that is tuned in to your specific requirements, content, and environment and more affordable than boxed products. We will also work with you to provide custom AI solutions that learn and adapt to your business to automate and streamline operations.