AI and Business Brokerage: How Artificial Intelligence is Changing Deals

Transcript

Andy and JT welcome you to another episode of The Deal Board Podcast. This week, they dive into one of the biggest forces reshaping the M&A landscape: artificial intelligence. From streamlining due diligence and financial analysis to improving business valuations and uncovering growth opportunities, they explore how buyers, sellers, and brokers are already putting AI to work. They also discuss the risks of relying too heavily on automation, why human judgment remains essential in every transaction, and the importance of protecting confidential information when using AI tools. Finally, they examine how businesses across a range of industries can increase their value by using AI to improve efficiency while maintaining the human element that still drives successful deals. Tune in for practical insights into how AI is changing business brokerage and what it means for your next acquisition or exit.

Listing of the Week:
A medical practice in Lakeland, Florida, is now on the market, offering a unique opportunity for nurse practitioners or young medical residents looking to step away from the corporate healthcare environment. Operated by a nurse practitioner rather than a doctor, the owner currently earns around $70,000 while working part-time. With approximately 50% of revenue generated through cash payments and the remainder coming from well-paying insurance providers, this established practice offers strong income potential. For more information, call Michael Shea at (321) 287-0349 or email him at [email protected].

Deal of the Week:
A manufacturer of custom orthotics for dogs has found its new owner! Primarily selling its products online, this niche business generated $500,000 in annual revenue with $150,000 in seller’s discretionary earnings (SDE). The business sold in just 60 days from listing to closing for $350,000, with the buyer putting $50,000 down and the remaining $300,000 financed over five years. Another successful transaction that brought together great people for a great outcome. To learn more, call Sherrye Coggiola at (864) 616-4325 or email her at [email protected].

Key Takeaways

[00:00] Outline of today’s topic: How AI is changing the brokerage landscape.

[01:38] AI tools that buyers, sellers, and brokers are already using.

[03:21] Ways AI is speeding up due diligence and financial analysis.

[05:28] Using AI to uncover growth opportunities after an acquisition.

[07:37] The growing role of AI in business valuations.

[10:29] Deal of the Week: Sherrye Coggiola (Western Carolinas) sold a manufacturer of custom dog orthotics in just 60 days.

[11:31] The risks of overreliance on AI and the need for human judgment.

[12:46] Protecting confidentiality when using AI during a transaction.

[14:13] How AI is increasing the value of businesses that use it effectively.

[17:22] Listing of the Week: Michael Shea (Tampa, Florida) is selling a part-time nurse practitioner-run medical practice in Lakeland.

Show Notes

“AI is actually speeding up diligence and financial analysis too, because it’s doing a good job up front and preparing it. And then as a buyer gets that information, they’re starting to use those AI tools to be able to analyze the information that they’re being given.” — JT Tatem [0:03:27]

“Using [AI] to help make the business better, obviously then results in a better value for the seller and a better opportunity for the buyer coming in.” — JT Tatem [0:09:36]

“There are some concerns about confidentiality as well.” — Andrew Cagnetta [0:12:47]

“[You] can’t just go to the free ChatGPT and dump all this confidential information in there.” — Andrew Cagnetta [0:12:58]

Mentioned in This Episode

• The Deal Board Podcast
• Subscribe to The Deal Board Podcast YouTube Channel
• United Franchise Group
• Transworld Business Advisors
• Transworld on LinkedIn
• Transworld on Facebook
• Michael Shea
• Sherrye Coggiola