Introduction

AI is quickly becoming more than a productivity tool. It is becoming part of how buyers evaluate businesses.

In a recent conversation with Brandon Powell, Founder and CEO of HatchWorks AI, we look at what AI means for your operations, your people, and potentially your company’s value when it is time to sell. Our two-part conversation covered both sides of the issue: how to get real results from AI, and how buyers are starting to evaluate it when a company is sold.

Buyers Are Asking About AI

Business owners preparing for a sale should expect a new question from sophisticated buyers:

What is your AI strategy?

Private equity firms and strategic buyers are increasingly looking at how companies are using AI, where opportunities exist, and what investments may be required after an acquisition.

If your honest answer today is “not much,” you’re not alone. Many owners are still early in this process. What matters is being able to explain where you are today and where you’re headed.

AI Could Become a Valuation Factor

Two similar businesses may look very different to a buyer if one has already invested in AI and the other has not.

A company that can demonstrate improved efficiency, stronger systems, and a thoughtful AI strategy may be better positioned than a competitor that has done nothing.

As AI adoption grows, it could increasingly become another factor buyers consider when determining valuation.

Be Ready for AI Questions in Due Diligence

AI questions are starting to show up in due diligence alongside the usual requests for financials, customer data, and contracts. Be prepared to answer questions like these:

• Where is AI being used in the business today, and what results has it produced?
• Which AI tools are employees using, including free or personal accounts?
• Do you have a written policy on how AI can be used?
• How is customer and company data protected when those tools are used?
• What AI investments would a new owner need to make after closing?

Good answers won’t, on their own, raise your price. But a seller who can answer these questions clearly comes across as organized and in control. A seller who can’t may give the buyer a reason to dig deeper, or to build the cost of catching up into the offer.

You Don’t Need to Transform Everything at Once

For many owners, AI can feel overwhelming. The answer isn’t necessarily a massive companywide transformation.

Start by identifying a few areas where AI could have the greatest impact on your business. Look at your P&L, consider where inefficiencies exist, and focus on use cases that can produce measurable results.

A few successful implementations can create momentum and help build a larger AI strategy over time.

Avoid the Common Mistakes

In the first part of our conversation, Brandon and I discussed why so many AI efforts stall or burn through budget without producing results. A few mistakes to watch for:

• Starting with the tool instead of the problem. Begin with a real cost or bottleneck in the business, not with whatever product is getting the most attention.
• Running pilots without measuring them. If you can’t show what changed, a buyer can’t give you credit for it.
• Overlooking your data. AI is only as useful as the data behind it. If your information is scattered, inconsistent, or stuck in old systems, cleaning it up may be the right first project.

Your People Matter Just as Much as the Technology

Successful AI adoption isn’t only about choosing the right technology.

Employees need to understand how the tools will be used and how they can make their jobs more effective. Without employee adoption, even a strong AI initiative can fail.

Bringing your team into the process early can make the transition much more successful.

Protect Your Data and Set the Rules

In the second episode, Brandon and I spent time on AI governance and protecting company data. It’s an area many owners overlook.

Your employees may already be using AI tools, whether or not you’ve approved them. If customer information, pricing, financials, or proprietary processes are entered into a public AI tool, that information may no longer be fully under your control.

A written AI policy is a practical first step. It should cover which tools are approved, what information can and can’t be shared, and who is responsible for oversight. For a buyer, a policy shows that management is ahead of the risk rather than reacting to it.

AI Needs to Be Part of the Business Strategy

AI shouldn’t simply be handed off to the IT department.

It touches operations, employees, customers, data, and long-term growth. Leadership needs to understand the strategy and take ownership of how AI fits into the broader business.

The Bottom Line

Buyers pay for businesses based on historical earnings, but they buy them based on future growth.

Increasingly, AI may be part of that growth story.

Business owners don’t need to have everything figured out today. But having a thoughtful strategy, identifying the right opportunities, and beginning to implement AI can show buyers that the business is prepared for what comes next.

If you’re considering a sale, Osage Advisors would welcome the conversation.