BELGIUM Trends and Developments Contributed by: Steven De Schrijver, Allegiance Law
Setting up M&A strategy and identification of deal In this phase of the M&A process, GenAI can support acquirers in identifying promising acqui- sition targets. Specifically, a GenAI-powered continuous screening model can monitor the market for potential M&A opportunities, assess- ing the alignment between each target and the acquirer’s strategic vision. This assists in mak- ing informed decisions on whether to pursue a particular deal. Beyond automated screening, GenAI can also be used manually by potential buyers to extract deeper insights into a target company’s financial health and market position. This further enhanc- In the second stage of the M&A process, GenAI can help address the complexities inherent in deal execution, with a particular focus on streamlining due diligence. During due diligence, a vast amount of informa- tion – financial (such as debts and liabilities), legal (including ongoing or potential litigation), and operational (eg, supply chain and logis- tics) – must be analysed in order to evaluate the company’s value, risks, and synergy potential. GenAI supports this process by automating the review of documents and policies, summarising content, identifying key insights, and uncover- ing patterns that may escape human analysis. It can flag potential risks, financial inconsistencies, and operational issues, as well as assist in the examination of contracts and value chains. es the decision-making process. Preparation and fulfilment of deal Specifically, GenAI adds value in assessing fair market value by analysing liabilities, growth potential, and cash flow. It also helps structure development plans and organise board policies
and documentation, ensuring the deal is well- prepared and aligned with strategic goals. Supporting post-deal integration and management This stage involves using GenAI systems to support post-deal integration and management once the acquisition is complete. GenAI can facilitate practical aspects of company man- agement, such as drafting company policies and streamlining operational guidelines. Additionally, management may consider using AI for recruitment – although this would require careful adherence to the EU AI Act, given that such applications are likely to be classified as high-risk, with stringent compliance require- ments. GenAI can also be utilised to foster organisational culture, generating ideas for future workshops, team-building events, and other initiatives that promote engagement and cohesion within the newly integrated company. Transformation and value realisation This step focuses on evaluating potential are- as for improvement following deal completion, identifying value-creation opportunities, and anticipating possible challenges (along with strategies to address them). GenAI can be leveraged to model various devel- opment scenarios for the merged company. By way of example, it can analyse which parame- ters –such as specific growth conditions or mar- ket assumptions – could drive higher or lower income generation. Additionally, GenAI models can help identify potential risks unique to the merged entity and suggest strategies to mitigate them. When integrated with analytics platforms, GenAI models can greatly enhance the monitoring of
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