Fusion & Acquisition [Interview Julien Belon, CEO, Arx]
Data and AI as levers to accelerate external growth for SMEs and mid-sized companies
External growth represents a strategic lever essential for companies wishing to develop rapidly and increase their competitiveness. Historically, SMEs and mid-sized companies have relied on investment banks to advise them in their acquisition searches and to identify the best targets that will allow them to strengthen through technological or geographical complementarity, or simply by increasing revenue in an existing activity.
Historically, these advisors used tools like Excel to catalog useful data for conducting their merger and acquisition operations. A significant first revolution occurred from the early 2000s to 2020 with the digitization of M&A tools and the introduction of the first databases dedicated to this activity’s challenges.
Players like Pitchbook, Arx, Crunchbase, and Merger Market have thus become references in this market. However, in the current context where external growth operations are intensifying, SMEs and mid-sized company leaders and investment banks seek to refine their acquisition search strategy. Simultaneously, Big Data and the explosion of data create new challenges that these databases must address.
The diversity and multiplicity of information sources particularly complicate data processing and analysis, making it more difficult for these tools to identify relevant targets for external growth opportunities. However, this abundance of data also represents a significant opportunity, as the intelligent exploitation of this new information can improve both the quantity and quality of targets. To capitalize on this opportunity, databases must adapt their identification methods and turn to more advanced technologies.
After the digitization of the 2010s, we are witnessing a new revolution for M&A tools and databases in particular. Indeed, as in many other fields, artificial intelligence (AI) emerges as the solution to the exponential increase in data. Thanks to AI, companies will be able to detect acquisition opportunities that would have been difficult to identify before. AI has the ability to quickly process immense volumes of data from diverse sources, revealing trends, correlations, and patterns often invisible to the naked eye. This in-depth analysis will allow for a better understanding of the market, facilitating the identification of the most relevant and suitable targets for companies active in the merger-acquisition field. Ultimately, this innovation will help companies make more informed investment decisions and minimize risks associated with external growth operations.
Julien Belon, CEO of Arx, a leading fintech in M&A activities in Europe, which counts among its clients BNP Paribas, Ardian, KPMG, Lazard, Astorg, confirms this new revolution arriving in the sector.
The advent of AI in the field of external growth opens up new perspectives for companies seeking development and competitiveness. By leveraging this cutting-edge technology, they will be able to optimize their target search process, improve the quality of their investment decisions, and thus increase their chances of success in their external growth initiatives. The arrival of AI in M&A heralds a radical change and a profound transformation of merger-acquisition activities in the very near future, both for companies and for investment funds and investment banks.
We are developing an advanced strategy on artificial intelligence. It aims to enable companies and professionals in M&A and Private Equity to significantly accelerate the management of their activities and deal flow through increased automation of their processes. Thanks to this personalized approach and the use of precise and up-to-date data, our recommendation AI will notably allow M&A and Private Equity players to carry out merger-acquisition or investment operations that they would not have detected otherwise. Our ultimate goal is to develop an artificial intelligence capable of analyzing and predicting trends from the large amount of data we automatically collect and to strengthen connections within our professional community (40,000 advisors, investors, and business leaders).
About Arx
Arx Corporate Finance is a French fintech company based in Paris, founded in 2013. Specializing in corporate finance, it offers an innovative workspace comprised of three modules for investment banks, private equity funds, and financial departments to manage their M&A operations.
Arx Database provides detailed information on companies, investment funds, and transactions, enabling users to monitor the activities of investment banks and the portfolios of private equity funds in real-time. This database is designed to enhance deal sourcing, identify new opportunities, and accelerate execution processes by providing accurate and up-to-date data.
Arx CRM (Dealflow Management) is a deal management system specifically designed for M&A professionals (corporates and advisors) and private equity firms. It enables efficient management of transactions, contacts, and activities. This solution integrates analytical tools and customizable dashboards, facilitating team collaboration. With Arx CRM, users can track their interactions and intelligently manage their activities to identify more opportunities and close the best M&A deals. Its ability to connect to numerous third-party applications enhances its central role in driving private equity and mergers and acquisitions operations.
Arx Network allows SMEs and mid-sized companies to broadcast their external growth searches by specifying their acquisition criteria (revenue, EBITDA, growth rate, industry sector, value chain positioning, etc.). Using the latest AI-based identification algorithms, the platform connects SMEs and mid-sized companies with the international investment banking ecosystem, providing easy access to companies undergoing sales processes. Executives and financial directors are notified when a company meets their criteria and are directly connected with the sellers.
Founding Partners
Julien Belon (CEO), a graduate of ESSEC in corporate finance, was an investment banker at Société Générale Midcaps, where he participated in the creation of the small caps M&A department.
Sébastien Denis (COO), a graduate of ESSEC, began his career in the energy sector before moving into private equity at LCF Rothschild.
Romain Belon (CTO), holding a master’s degree in information systems management, developed his technological skills in the biotechnology sector.
