How AI Will Impact Business Valuations and Owner Exits

26/06/2025

The business world is standing on the edge of a major inflection point—and it's being driven by artificial intelligence. For business owners contemplating an exit, and for acquirers evaluating potential investments, AI is no longer a futuristic add-on. It's fast becoming a key determinant of business value.

In the same way cloud computing and mobile reshaped entire industries over the past 15 years, intelligent AI agents and automation technologies are now poised to redefine how businesses operate—and how they are valued.

Let's break down how AI will affect business valuations and exit strategies over the next few years.

1. Operational Efficiency Will Be Valued Like Gold

AI-driven businesses can operate faster, leaner, and with fewer errors. From customer service chatbots to predictive inventory systems and AI-driven financial forecasting, companies leveraging AI will have significantly higher margins and more predictable performance.

Why this matters for valuations:
Buyers are increasingly applying a premium to businesses with lower operational risk and higher EBITDA margins. If your business is using AI to improve efficiency, reduce overhead, or increase throughput, you're not just increasing profitability—you're multiplying enterprise value.

2. AI Readiness Will Become a Core Due Diligence Metric

Sophisticated acquirers are already including AI maturity assessments in their due diligence. This includes evaluating:

AI integration in core processes
Quality and accessibility of company data
Tech stack readiness for intelligent agents
Team capability to adapt and scale AI use

Translation:
If your business is behind on AI adoption, expect that to be reflected in your valuation—or worse, become a deal-breaker.

3. "People-Dependent" Businesses Will Be Penalised

One of the most overlooked risks in lower-middle-market businesses is their reliance on key people to drive performance. AI changes that.

With intelligent agents now capable of running workflows, managing tasks, and even making decisions based on real-time data, buyers will heavily discount businesses that still rely on tribal knowledge and owner involvement.

Takeaway:
Buyers will pay more for businesses that run on systems and AI—not just staff.

4. New Value Drivers Are Emerging

Traditional valuation metrics like EBITDA multiples and revenue growth still matter—but AI introduces new value drivers:

Data as an asset class
Proprietary AI models or agent workflows
Automation-driven scalability
Reduced customer acquisition cost via AI marketing
Intellectual property around prompts, training data, and integrations

If your business is developing or using proprietary AI tools, that IP can dramatically enhance perceived value.

5. Exit Timing is Being Pulled Forward

Owners who are AI-enabled will likely be able to exit earlier and for higher multiples, as buyers rush to acquire tech-savvy, future-proof businesses. On the flip side, owners who delay digital transformation risk seeing their value decline, especially as AI reshapes their industry.

Reality check:
In the next 3–5 years, AI laggards may become distressed sellers. The window of opportunity is open—but it won't stay that way forever.

Final Thoughts

AI isn't just a tech trend—it's a valuation multiplier or a value destroyer, depending on how ready your business is.

If you're a business owner planning an exit in the next few years, now is the time to:

Audit your AI readiness
Begin embedding intelligent agents and automations
Capture and structure your data
Eliminate owner dependency
Build an AI-enabled business model that buyers will pay a premium for

Because in this new era, AI won't just help you grow—it's what will get you paid.

Need help getting your business AI-ready for exit? Let's talk. We can help modernise your systems increasing your value, and preparedness for a successful sale.