M&A Transactionβ€’

Plan A Tech Acquires AI for M&A Due Diligence

Plan A Technologies enhances M&A technical due diligence with a new AI assessment tool, offering deeper insights into technology risks and opportunities for investors.

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Alvaro de la Maza

Partner at Aninver

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Key Takeaways

  • Sector: Technology, Software & Gaming, Business Services.
  • Geography: United States.

Analysis

Plan A Technologies has strategically integrated a novel artificial intelligence assessment tool, significantly enhancing its capacity for technical mergers and acquisitions due diligence. This move signals a commitment to leveraging advanced AI to dissect complex technological infrastructures with unprecedented speed and precision, aiming to uncover critical risks and opportunities often obscured by conventional evaluation methods.

The acquired technology, developed by Serhii Melnychuk, who now joins Plan A Technologies as an architect, introduces an AI-driven analytical layer. This complements Plan A’s established due diligence framework, which traditionally involves in-depth expert interviews, meticulous manual code reviews, comprehensive architecture analysis, thorough documentation examination, and the utilization of commercial code-scanning products. The new AI capability is designed to process vast and intricate technology ecosystems, identifying subtle patterns and anomalies that might elude human analysts or standard software.

This acquisition aligns with Plan A Technologies' broader strategic objective of augmenting its service offerings with proprietary technological assets. The company, which has a track record of over 500 product deployments globally, serves a diverse clientele including private equity firms, corporate acquirers, and private investors engaged in technology-centric transactions. Their technical due diligence services scrutinize crucial aspects such as technology quality, scalability, integration challenges, modernization needs, security vulnerabilities, and post-acquisition investment requirements.

The market for M&A advisory services, particularly within the technology sector, is increasingly demanding sophisticated tools to navigate the rapid pace of innovation and the complexity of digital assets. Companies are seeking deeper insights into the true technical health and potential of target businesses. Plan A Technologies' investment in this AI assessment technology positions them to offer a more robust and efficient solution, addressing the growing need for granular technical evaluation in deal-making. This is particularly relevant as the software and IT services sector continues its robust growth, with deal activity remaining high.

Slav Kulik, Co-Founder of Plan A Technologies, emphasized the strategic advantage of this integration. He highlighted that effective technical due diligence is not merely about compiling a list of issues, but about discerning critical flaws from manageable technical debt. The new AI tool, when combined with the seasoned judgment of their technical experts, allows for a more profound understanding of underlying technology platforms and their direct business implications. This synergy between AI and human expertise is key to providing clients with a clearer picture of their potential acquisitions.

Beyond its M&A focus, Plan A Technologies is actively involved in custom software development, the creation of proprietary AI agents, legacy application modernization, data platform construction, cloud migration management, and enterprise system integration. The addition of Melnychuk and his AI technology is expected to further accelerate their ability to deliver these complex solutions, reinforcing their position as a comprehensive technology advisory firm.