Regulatory risk attaches to the asset, not the transaction — and it discounts value in the deal room. Buyer or seller, MB AI quantifies it before the signature: deal-grade D7™ score, ready-to-insert clauses, opposable attestation.
📄 Read the analysis note — tier-1 sources →
Quantify the target's AI Act exposure before the LOI. The score feeds your R&W, your escrow, your MAC clause — and justifies your discount, with numbers.
Establish your AI Act compliance before the deal room — not during, where it costs 2 to 3× more. Arrive with an opposable attestation, not a 30% hole.
A classic due diligence covers legal, financial, commercial. On a European AI asset, a layer is missing: EU AI Act exposure. Lawyers don't read it (they read contracts), and leading audit firms don't certify it in time (3 to 6 months, €150-500K). So it isn't priced — until it is, by the buyer across the table or the regulator after closing.
The orders of magnitude, sourced: regulatory, privacy and technical risk can cut AI valuation multiples by 15 to 30% (FE International, 2026), and one in five strategic acquirers walked away from an AI deal in 2026 because of AI's anticipated impact on the target (Bain & Company). Market analyses (Dec 2025) confirm that EU AI Act compliance "could affect the valuation".
Sources: Bain & Co, FE International, financial press. Full analysis →
Pre-LOI screen on public data. 0-100 score across 7 dimensions, 3-scenario Monte Carlo, estimated discount. GO/NO-GO in 48-72h.
Score on the dataroom under NDA (ρ 0.7-1.0). Ready-to-insert clauses: R&W, escrow, regulatory MAC, compliance earn-out. W&I insurability mapping.
Formal signed opinion, defensible at signing, before a W&I underwriter or a court. Releases escrow on independent certification.
Post-closing: the acquired asset's compliance level is maintained and re-attested over time. Proof stays current as the law evolves.
In all three cases, the seller pays. The only variable you control: arrive in the deal room with compliance already established and proven. Established 12 months ahead, it costs a fraction; handled during the deal, 2 to 3 times more.
MB AI does not practise law. It produces the factual, quantified and maintained material your legal counsel then translates into clauses. MB AI measures, the lawyer drafts. The score becomes a piece of your due-diligence file — you don't carry the cost of building it in-house.
Regulatory risk attaches to the asset: the buyer inherits obligations and fines from closing. Undetected non-compliance discounts 15-30% of EV, and a savvy buyer prices it as a haircut, escrow or walk-away.
A D7™ score on the dataroom under NDA (D7™ Private) with remediation plan and clauses (R&W, escrow, MAC, compliance earn-out), then a signed Opinion Letter defensible at signing and in W&I underwriting.
A public-data screen in 24 to 72h (D7 Discovery or Standard) for pre-LOI; a D7™ Private on the dataroom in 5 to 10 business days.