There are different kinds of Al but since 2022, the most famous of these are Large Language Models (LLM). These are revolutionary Al models that allow people to ask questions in plain English (other language) and the Al will answer in kind. However, LLMs can sometimes “hallucinate”. This means that Al models, may generate information that is incorrect, fabricated, or inconsistent with known facts. Why does this happen?
The first joke my daughter told me when she started school was: “What’s worse than finding a worm in. your apple? … Finding half a worm!” Perhaps that’s one reason she still doesn’t eat apples. But the joke holds true for when you are acquiring a company – you want to find the worm in the apple before you’ve started eating it!
According to a Harvard Business study, the failure rate for acquisitions is between 70% and 90%. When you are acquiring a company, you want to find out what the potential problems are fast. If there is information in the Data Room that indicates potential risk, that is not good. But what is worse is missing it late – you want to find the problems fast.
This is how Reccy helps. You can get to the problems (if there any) quickly.
In their 2024 paper “Impact Due Diligence Principles” Bundesinitiative Impact Investing mentions the important areas to look for potential problems: 1. Financial Issues (such as hidden liabilities or debt), 2. Legal Risks (such as pending litigation), 3. Operational concerns (such as IP rights) and other risk areas such as governance problems.
We cover all these things in our comprehensive report which covers issues like: Products & Services, Competitors, Customers, Market Positioning, Business Risks, Debt, Culture and Technology.
We have 60 points of analysis to provide a comprehensive overview of the data room.
If the data room shows no issues of concern, and your analysis and legal assessment is in agreement, you can move forward with peace of mind. But if there are problems, Reccy helps you identify them quickly and early in the process, saving you considerable expense and time.
Your Reccy room is secure, and encrypted at rest. We do not train our systems on your data or pass to any insecure third-party companies. Only those authorised by you can see your documents.
Your Reccy room is secure, and encrypted at rest. We do not train our systems on your data or pass to any insecure third-party companies. Only those authorised by you can see your documents.
