AI Due Diligence for Private Equity M&A
Don't Acquire $15M in Hidden AI Technical Debt
Acquiring a company with AI systems? We uncover hidden biases, technical debt, compliance gaps, and safety failures before you close the deal.
Technical AI due diligence in your 30-day DD window.
Real Case Study: $120M SaaS Acquisition
A PE firm was days away from closing a $120M acquisition of a B2B SaaS company with AI-powered features.
What We Found:
- Biased AI causing 15% customer churn (undisclosed)
- GDPR violations in AI training data ($10M+ exposure)
- Zero AI documentation or testing (regulatory risk)
- Technical debt requiring 12-18mo to remediate
Outcome:
- Renegotiated deal down by $18M
- Created 18-month remediation roadmap
- Avoided $10M+ GDPR liability
- Prevented post-acquisition customer exodus
ROI: $18M renegotiation + $10M avoided liability = $28M value from $75K DD engagement
What We Assess in AI Due Diligence
Technical Risk
- • AI hallucination rates & failure modes
- • Adversarial robustness testing
- • Model drift & degradation analysis
- • Training data quality & lineage
- • Technical debt assessment
Bias & Fairness
- • Demographic bias testing
- • Protected class disparate impact
- • Fairness metrics analysis
- • Historical bias in training data
- • Lawsuit & liability exposure
Regulatory Compliance
- • GDPR, CCPA, AI Act compliance
- • Industry-specific regulations
- • Documentation & audit trails
- • Consent & data rights
- • Enforcement risk assessment
Business Impact
- • AI-related customer churn
- • Support ticket analysis
- • Product performance degradation
- • Revenue impact from AI failures
- • Remediation cost estimates
Financial Exposure
- • Lawsuit & settlement risk
- • Regulatory fine exposure
- • Insurance implications
- • Indemnification clauses needed
- • Valuation impact analysis
Operational Maturity
- • AI governance & oversight
- • Testing & QA processes
- • Monitoring & incident response
- • Team expertise assessment
- • Vendor dependency analysis
DD Report Deliverables (15-30 Days)
Executive Summary (5-10 pages)
Red/yellow/green risk ratings, valuation impact, deal recommendations
Technical Risk Assessment (20-40 pages)
Detailed findings on AI safety, robustness, and failure modes
Liability Exposure Analysis
Regulatory, legal, and financial risk quantification
Remediation Roadmap (12-24 months)
Prioritized fixes with timelines and cost estimates
Deal Structure Recommendations
Renegotiation points, earnouts, indemnifications, escrows
Post-Acquisition Integration Plan
Day 1-100 AI safety priorities for portfolio company
AI Due Diligence Pricing
Rapid Assessment
- 15-day turnaround
- High-level risk assessment
- Red/yellow/green ratings
Full DD Package
- 30-day comprehensive DD
- Full technical & compliance audit
- Remediation roadmap included
- Deal structure recommendations
Portfolio Program
- Multiple deals per year
- Portfolio company AI audits
- Retainer for ongoing support
Don't Close Without AI Due Diligence
One hidden AI liability can wipe out your returns. Book a call to discuss your deal.
Request DD Assessment