AI & Voice Agents: Revolutionizing M&A Research Costs

Mergers and acquisitions (M&A) are notoriously complex and expensive undertakings. Even for well-resourced private equity (PE) firms, the process demands significant time and capital. Beyond countless hours spent in meetings with target company executives and intricate financial modeling, substantial funds are allocated to external advisors – accountants, legal counsel, and, crucially, management consultants. These consultancy fees can easily run into the millions, and a critical drawback is the lack of reimbursement if a deal ultimately falls through. Consequently, PE firms traditionally delay engaging costly specialists like McKinsey, BCG, or Bain until they have a high degree of confidence in a potential transaction, limiting the scope and timing of crucial commercial research.

The Rising Cost of Traditional M&A Due Diligence

The traditional M&A due diligence process relies heavily on human capital and extensive, often manual, research. A comprehensive commercial due diligence report, providing insights into market dynamics, competitive landscapes, and target company performance, can easily cost between $500,000 and $1 million. This price tag stems from the intensive effort required to interview dozens of corporate customers, including C-suite executives, and synthesize those insights with proprietary market data. The inherent risk of non-recoverable costs creates a significant barrier to early-stage, exploratory research, potentially leading to missed opportunities or flawed investment decisions.

DiligenceSquared: An AI-Powered Disruption

Enter DiligenceSquared, a startup emerging from YC’s fall 2025 cohort, poised to disrupt this established paradigm. The company asserts that leveraging the power of Artificial Intelligence (AI), specifically AI voice agents, it can deliver top-tier, consultancy-quality commercial research at a fraction of the traditional cost. Founded by Frederik Hansen and Søren Biltoft, DiligenceSquared brings a unique blend of expertise to the table.

Founders with Deep M&A Expertise

Hansen previously served as a principal at Blackstone, where he directly commissioned these high-cost diligence reports for multi-billion dollar buyouts. Biltoft, meanwhile, spent seven years at BCG’s private equity practice, leading similar diligence efforts. This firsthand experience with the pain points of traditional due diligence informed their vision for a more efficient and accessible solution. Since launching in October, DiligenceSquared has successfully completed multiple projects for some of the world’s largest PE firms and mid-market funds, according to Hansen in a recent interview with GearTech.

Securing Seed Funding and Market Validation

The early traction demonstrated by DiligenceSquared attracted significant investor interest. Damir Becirovic, a former Index Ventures partner, led the startup’s $5 million seed round through his new VC firm, Relentless. This funding underscores the growing recognition of the potential for AI to transform the M&A landscape and reduce research costs.

How AI Voice Agents are Changing the Game

DiligenceSquared’s core innovation lies in its application of AI voice agents to conduct interviews with customers of potential acquisition targets. Instead of relying on expensive consultants to manually conduct these interviews, the startup utilizes AI to automate the process, significantly reducing both time and cost. This approach mirrors the models seen in consumer research startups like Keplar, Outset, and ListenLabs (which recently raised $69 million at a $500 million valuation), but DiligenceSquared differentiates itself through its specialized focus on M&A due diligence.

Differentiating from Consumer Research

Hansen and Biltoft emphasize that their due diligence process and final outputs are fundamentally different from the consumer research generated by companies like Keplar and ListenLabs. While those firms focus on broad consumer sentiment, DiligenceSquared concentrates on gathering specific, commercially relevant insights from corporate customers. The startup’s methodology is designed to provide PE firms with the detailed information they need to assess market position, competitive advantages, and potential risks associated with a target company.

Cost Savings and Increased Accessibility

By automating a significant portion of the research process, DiligenceSquared claims to deliver comparable analysis for just $50,000 – a substantial reduction from the $500,000 to $1 million typically charged by traditional management consulting firms. This lower price point dramatically increases accessibility, allowing PE firms to engage DiligenceSquared earlier in the deal process, even before they have a strong conviction about a potential acquisition.

“We are taking these great insights that were previously reserved for the very big decisions, and now we make them more accessible,” Hansen explains. This democratization of information empowers PE firms to make more informed decisions and potentially uncover hidden opportunities.

Competition in the AI-Powered Due Diligence Space

DiligenceSquared is not operating in a vacuum. The company faces competition from other startups seeking to disrupt the traditional diligence market. Bridgetown Research, for example, raised a $19 million Series A co-led by Accel and Lightspeed in February 2026, demonstrating the growing investor interest in this space. This competitive landscape is likely to drive further innovation and cost reductions in the coming years.

The Role of Human Expertise

Despite its reliance on AI, DiligenceSquared recognizes the importance of human oversight. The startup employs senior human consultants who verify the accuracy and commercial insights of the AI-generated analysis. This hybrid approach ensures the quality and reliability of the final output, providing PE firms with the confidence they need to make critical investment decisions.

The Future of M&A Research

The emergence of DiligenceSquared and its competitors signals a significant shift in the M&A research landscape. AI-powered solutions are poised to become increasingly prevalent, driving down costs, accelerating timelines, and improving the quality of due diligence. The integration of AI voice agents, coupled with human expertise, offers a compelling alternative to the traditional, expensive, and time-consuming methods of the past.

Key Trends to Watch

• Increased Adoption of AI: Expect to see more PE firms embracing AI-powered due diligence tools as they become more sophisticated and reliable.
• Focus on Data Quality: The accuracy and reliability of AI-generated insights will depend heavily on the quality of the data used to train the algorithms.
• Hybrid Approach: The most successful solutions will likely combine the efficiency of AI with the judgment and expertise of human consultants.
• Expansion of Use Cases: AI-powered due diligence is likely to expand beyond commercial research to encompass other areas, such as legal and financial due diligence.

DiligenceSquared’s Team and Technology

Beyond Hansen and Biltoft’s extensive M&A experience, DiligenceSquared benefits from the technical expertise of Harshil Rastogi, a former Google engineer. This combination of domain knowledge and technical prowess positions the startup for continued success. The company’s proprietary AI algorithms are continuously refined and improved, ensuring that it remains at the forefront of innovation in the M&A research space.

As the M&A market continues to evolve, companies like DiligenceSquared are paving the way for a more efficient, data-driven, and accessible future. The revolution in M&A research, powered by AI and voice agents, is well underway.