M&A Deals With AI Targets: Balancing the Opportunities, Risks, and Rewards; Retooling the Acquisition Model
Navigating Unique Due Diligence Concerns and Tailoring the Purchase Agreement to Account for Risks Inherent With AI
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE webinar will explore the opportunities, risks, and rewards of acquiring an AI company. The panel will discuss the unique due diligence concerns on a target in the AI space, special considerations for drafting the purchase agreement, and how these deals require careful allocation of risk through indemnities, representations, warranties, holdbacks, escrow, and price adjustments.
- Overview of the AI M&A market
- Opportunities, risks, and rewards with AI targets
- Pitfalls unique to transactions involving AI
- Considerations and questions to ask the target during the due diligence phase of the deal
- Tailoring the sales and purchase agreement and other required documents to address the risks involved with AI
- Allocating risk through indemnities, representations, warranties, holdbacks, escrow, and price adjustments
- Assessing warranty and indemnity insurance policies
- Increased regulatory scrutiny
- Foreign direct investment (FDI) review
- Antitrust review
- Additional issues and considerations
The panel will review these and other key issues:
- What are the unique characteristics of an AI company that require an expanded and revised scope of review during the due diligence stage of a deal?
- What are some key diligence questions to ask of acquisition targets working in the AI space during the evaluation process?
- How should the purchase agreement and other required documents be tailored to address the unique risks involved with AI?
- What is the current regulatory framework governing AI deals that counsel should be aware of?
Julia B. Jacobson
Squire Patton Boggs
Ms. Jacobson helps clients maximize the value of their strategic relationships by drafting and negotiating a wide range... | Read More
Ms. Jacobson helps clients maximize the value of their strategic relationships by drafting and negotiating a wide range of commercial contracts, particularly technology-centric agreements and the deployment of machine learning and artificial intelligence. For both product and service providers and users, she structures and negotiates contracts and develops customized template agreements and tools for vendor screening and assessments. Additionally, a significant portion of Ms. Jacobson’s practice is devoted to advising clients on an array of privacy, cybersecurity, data breach and data governance matters. She assists clients with the design and development of privacy-sensitive policies for the collection and use of personal data.Close
David W. Kantaros
Foley & Lardner
Mr. Kantaros serves as Co-Chair for Artificial Intelligence within Foley & Lardner’s Innovative Technology... | Read More
Mr. Kantaros serves as Co-Chair for Artificial Intelligence within Foley & Lardner’s Innovative Technology sector and is a member of the Private Equity & Venture Capital and Transactional & Securities Practices. He represents venture capital and private equity funds as well as publicly and privately held corporations in the emerging technology and life science industries. Mr. Kantaros’ experience includes: representing private equity funds, family offices, and public and private companies in mergers and acquisitions, joint-ventures, public offerings, and control investments; advising venture capital firms, strategic investors, and high net worth individuals and investment groups in private placement activities, including preferred stock and secured and convertible debt financing in technology and life science companies.Close
Partner, M&A and Private Equity
Orrick Herrington & Sutcliffe
Mr. Padgett focuses on supporting companies and investors developing technologies for nascent industries like energy... | Read More
Mr. Padgett focuses on supporting companies and investors developing technologies for nascent industries like energy storage, alternative fuels, carbon capture, hydrogen, agtech and digital infrastructure. He is passionate about developing innovative technology solutions and AI tools to enhance legal services. Mr. Padgett helps lead the firm’s MAPE 2.0 project team, a platform that transforms M&A execution, which won the Financial Times' Reinventing the Legal Practice category.Close