Global Survey AI and Automation Are Becoming an Important Factor in Company Sales

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FTI-Andersch AG

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AI and automation are increasingly determining the success of company sales. Europe is clearly lagging behind, according to an FTI study.

Exits are becoming more difficult for European companies: a survey of 539 private equity managers (PE managers) shows that AI and automation have become a decisive sales factor.

The study identifies three key findings:

• 58 percent of investors cite AI and automation as the most important exit factor - ahead of business model and market position.
• Europe is falling behind: only 60 percent rate the AI maturity of their portfolios as above average - compared to 76 percent in North America.
• Technology dominates the value enhancement agenda: 84% of funds see IT and digitalization as the strongest growth levers.

"What is remarkable, however, is the clarity with which respondents put AI capability at the top of the list for the first time this year," says Dr. Martin Schneider, Partner at FTI-Andersch. "We are seeing with our clients that AI and automation are increasingly no longer just located in IT - they are becoming a natural part of efficient operations. In future, every transformation must also be measured by how AI-capable it makes companies."

Technology as a Value Driver - But Traditional Levers Remain Indispensable

According to the respondents, these are the key levers for increasing value:

• 84 percent of respondents see technology and IT as the greatest lever for increasing value,
• 80 percent cite working capital optimization as an important factor,
• 79 percent focus on optimizing the cost structure,
• 68 percent explicitly describe AI as a value driver,
• 23 percent already use AI "very frequently" to increase company value.

According to Schneider, cost reduction, liquidity management and operational excellence remain key levers. "However, the fact that technology and AI are now at the forefront of prioritization shows how much the mechanics of value enhancement are changing," says the RTI expert. Without digital empowerment, measures to increase sales or optimize costs can hardly be implemented efficiently in the future. "This is a paradigm shift."

Differences by Region and Sector: Europe Is Lagging Behind

Regionally, Europe lags behind in terms of satisfaction with the level of technological maturity. While 60 percent of European respondents state that their portfolio companies are above average in terms of AI implementation, this figure is 76 percent in North America, 74 percent in South and Latin America and 69 percent in the Asia-Pacific region.

European companies need to catch up.

Martin Schneider

Companies Still Operate Too Analog

"As in so many areas, the figures show that European companies have some catching up to do," says Schneider. "SMEs in particular often lack the basic technological equipment - many companies continue to operate in a very analog way."

Stable operational foundations are needed before AI can be used effectively:

• functioning processes,
• reliable liquidity planning,
• structured working capital management.

Schneider adds: "If fundamental factors such as market positioning, financial structure or operational efficiency are not right, even the best AI approach can hardly be realized. The statements of the PE managers show: The time pressure is growing. It's no longer just about attractive sales prices - many companies are struggling to be sellable in the first place."

According to Schneider, some renowned companies have been on the market for years without finding a buyer. "Investors are becoming more selective, many past bets have not worked out. And the rise in interest rates has made capital significantly more expensive. If you want to sell your company successfully in the coming years, you have to deliver digital connectivity and substance. Otherwise, others will take over the increase in value - to the detriment of the seller."

The full study can be downloaded here.