Until recently, when assessing a company for a potential acquisition, the main questions focused on its financial performance, growth, cash generation, competitive position and ability to expand.
All these factors remain essential. However, a new question is beginning to emerge:
Is this company prepared to compete in an environment transformed by artificial intelligence?
Technological innovation is no longer simply an operational consideration. It is becoming an increasingly important factor in investment decisions and M&A transactions.
AI is becoming part of a company’s value
This shift is already evident in major international transactions. Approximately one-third of the 100 largest corporate M&A transactions in 2025 included artificial intelligence as part of their strategic rationale.
Companies are no longer acquiring other businesses solely to increase turnover, enter new markets or gain market share.
They are also looking to acquire capabilities that would take years to develop internally: technology, data, software, automation, cybersecurity, analytics or specialised talent.
Develop technology or acquire it?
This will become an increasingly important decision for many companies.
With technological change occurring at a rapid pace, developing certain capabilities from scratch can require years of investment. Acquiring a company that already has the technology, expertise and right team in place can significantly accelerate this process.
This is why we are seeing traditional boundaries between sectors begin to blur. Companies in the industrial, energy, financial and healthcare sectors are seeking technological capabilities to transform their own business models.
Innovation can also influence valuation
For business owners, there is another important implication.
Two companies with similar financial results may have very different future prospects.
A company with digitalised processes, structured data and the ability to integrate automation and AI may be better positioned to improve productivity and scale its operations.
A company that relies heavily on manual processes or requires significant investment in technology may present greater risks for a potential buyer.
For this reason, investors are increasingly assessing factors such as a company’s technological readiness, the opportunities offered by AI and the risk that it could disrupt its business model.
Technology is therefore becoming an increasingly important consideration in due diligence processes and in assessing a company’s future potential.
AI could drive a new wave of M&A transactions
The M&A market ended 2025 with a 36% increase in global deal value, although the number of transactions rose by just 1%.
In the medium term, technological transformation could become a new catalyst for M&A activity, with companies acquiring capabilities they do not yet possess, investors seeking businesses positioned for growth and corporate groups restructuring their portfolios to focus on activities with greater potential.
For business owners and shareholders, the message is clear:
Innovation is no longer simply about improving efficiency. It can also influence a company’s competitive position, attractiveness to investors and future value.
And when considering a potential sale, acquisition or the entry of an investor, understanding how technology fits into the future of the business will become increasingly important.
At CONFIANZ, we advise business owners and shareholders on M&A transactions, assessing each decision from a financial and strategic perspective to identify opportunities and maximise the company’s value.
