In mergers and acquisitions, the difference between a transformative deal and a catastrophic mistake often hinges on what’s discovered—or missed—during technical due diligence. As artificial intelligence becomes central to company valuations and competitive positioning, investors and acquirers face unprecedented challenges in assessing AI capabilities. At Osparna, we provide the specialized AI due diligence that private equity firms, corporate development teams, and venture investors need to make confident investment decisions.

The High Stakes of AI in M&A

When a target company positions AI as a core value driver, the stakes couldn’t be higher. We’ve witnessed deals where AI claims justified premium valuations—only for post-acquisition analysis to reveal rudimentary implementations that any competitor could replicate in weeks. Conversely, we’ve helped clients identify genuinely differentiated AI capabilities that justified aggressive acquisition strategies and unlocked significant competitive advantages.

The challenge? AI technology is uniquely difficult to evaluate from the outside. Unlike traditional software, where functionality can be demonstrated and tested, AI systems depend on training data quality, model architecture sophistication, and operational maturity that aren’t visible in product demos. Marketing materials showcase impressive results but rarely reveal whether those results stem from breakthrough algorithms or merely favorable test conditions.

Investment-Grade Technical Due Diligence

Osparna’s AI due diligence service is specifically designed for the M&A context. We know what investors need to know, when they need to know it, and how to communicate technical findings in business terms that impact valuation and deal structure.

Our assessments examine the foundation of AI value creation. We audit training datasets for size, quality, diversity, and legal provenance—because data is the moat that determines whether AI capabilities are defensible or easily replicated. We evaluate model impementation and performance metrics against industry benchmarks, revealing whether the technology represents genuine innovation or commoditized implementations of open-source frameworks.

We conduct code reviews to assess technical debt, scalability constraints, and the true cost of maintaining and improving AI systems post-acquisition. We analyze computational infrastructure and cloud dependencies, quantifying ongoing operational expenses that directly impact cash flow projections. We review intellectual property documentation, identifying whether AI capabilities are truly proprietary or dependent on licensed technologies that could introduce post-close liabilities.

De-Risking the Transaction

 Beyond technology assessment, Osparna evaluates the team that sustains AI capabilities. We assess the AI team’s expertise, identify key personnel, and evaluate retention risks that could evaporate value immediately post-acquisition. We examine development practices and MLOps maturity—the operational discipline that determines whether AI systems can be maintained, improved, and scaled.

Our AI governance review identifies regulatory and ethical risks increasingly scrutinized by stakeholders. We evaluate bias detection mechanisms, model explainability, data privacy compliance, and monitoring systems—factors that can expose acquirers to litigation, regulatory action, or reputational damage.

We also stress-test strategic claims. Does the AI deliver the stated business outcomes? Are performance benchmarks reproducible in production environments? Could simpler, less costly approaches achieve comparable results? These questions directly impact whether projected synergies and growth assumptions underlying the deal thesis are achievable.

Empowering Informed Investment Decision

Osparna delivers findings that inform every stage of the investment process. During preliminary diligence, we provide rapid assessments that help you decide whether to pursue opportunities further. In confirmatory diligence, we deliver comprehensive technical reports that inform valuation adjustments, deal structure, and negotiation strategy. Post-close, our findings become the roadmap for integration planning and value realization.

We’ve helped private equity firms walk away from deals where AI claims couldn’t withstand scrutiny, saving them from value-destroying acquisitions. We’ve helped corporate acquirers identify integration risks early, enabling them to structure earnouts and reps-and-warranties appropriately. We’ve helped venture investors validate technical capabilities that justified follow-on investments.

Your M&A Advantage

In an environment where AI capabilities increasingly drive valuations, rigorous technical due diligence isn’t optional—it’s essential investment protection. Osparna brings the specialized expertise that transforms AI uncertainty into investment confidence.

Contact Osparna today to discuss how our AI due diligence services can protect and enhance your next transaction.