Nelson Advisors featured in The M&A Journal: Increasing Exit Multiples: IP and AI Asset Management in M&A Transactions

Nelson Advisors research was featured in The M&A Journal: Increasing Exit Multiples: IP and AI Asset Management in M&A Transactions authored by James E. Malackowski and Angelica Hofmann.

'The protection and management of intellectual property (IP) assets and artificial intelligence (AI) resources during company sale processes have evolved from ancillary considerations to critical value drivers that can significantly influence EBITDA valuation multiples and overall transaction success. As we witness the completion of the market transition to an economy where intangible assets represent the dominant source of corporate value, the strategic management of IP and AI assets has become paramount in M&A transactions.'

Source: https://www.jsheld.com/uploads/Increasing-Exit-Multiples_IP-and-AI-Asset-Management-in-MA-Transactions-The-MA-Journal-Vol-24-No-8.pdf

AI-Specific Valuation Impacts

Companies with proprietary AI models and clean data rights often receive premium valuations, with AI companies commanding median multiples exceeding 25.0x revenue in larger transactions. (8) Healthcare AI companies with proven solutions could see multiples rise to 6-8x revenue, above the sector average of 4.5-5x, reflecting buyers’ willingness to pay premiums for innovation and future revenue potential. (9) Companies relying heavily on third-party AI services or with unclear data ownership face valuation penalties.

Source (9)  https://www.healthcare.digital/single-post/healthtech-m-a-multiples-march-2025-current-trends-and-variables-driving-valuations