Sep 15, 2025

AI Red & Green Flags in M&A: What PE Firms Must Watch

Chris Taylor
Ratings
chris-taylor

CEO & Co-Founder @ Fractional AI

San Francisco, CA

CEO & Co-Founder of Fractional AI, helping PE firms and portfolio companies implement AI workflow automations, product features, and diligence at scale.

In this excerpt, Chris Taylor explains how private equity firms assess AI-related risks and opportunities during due diligence. He breaks down how to spot red and green flags, from disruption threats to hidden growth opportunities, and shares a striking example of how AI can cut software client onboarding from years to months—unlocking massive revenue potential.

Length:  3:31

Chapters:

00:00 – Intro
00:13 – How PE firms evaluate AI disruption risk
01:06 – Spotting automation opportunities in portfolio companies
02:14 – Case study: Shortening onboarding cycles with AI
03:35 – When PE firms should co-invest in AI initiatives

Keywords:

AI in private equity, AI due diligence, AI risks in M&A, AI opportunities in M&A, private equity AI playbook, AI red flags, AI green flags, onboarding automation, AI for software companies, AI in portfolio companies, automation in PE, AI-driven revenue growth, Chris Taylor interview, Just Curious AI

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