One factor that is often overlooked is the risk of disruption from artificial intelligence. With the rapid advancements in AI, many companies could face new competitors that emerge almost overnight. It's important to evaluate whether a potential target could be disrupted by AI, machine learning, or other emerging technologies. The companies that are investing in their own AI and automation may be better positioned for the long run.
Does your acquisition checklist include evaluating the risk of disruption from AI and emerging technologies? What other factors do you see as most important when evaluating acquisition targets?
Please share your thoughts!
However, while the potential for AI disruption is certainly an important consideration, it’s just one piece of the puzzle. A holistic approach to evaluating acquisition targets can help mitigate risk.