AI-Powered Risk Detection

Risk Engine

Systematic risk detection. Our AI reads every document, screens against a taxonomy of 300+ leaf-level risk checks, and quantifies the dollar impact on your deal.

300+ leaf-level checks
Dollar quantification
5 risk categories
300+

Leaf-Level Risk Checks

Structured taxonomy

5

Risk Categories

Comprehensive coverage

$$$

Dollar Quantification

Impact estimates

<5 min

Full Risk Scan

Per data room

Comprehensive Coverage

The five places losses hide.

300+ leaf-level risk checks, reconciled across every document in the data room.

Legal & Compliance

  • Ongoing litigation exposure
  • Regulatory compliance gaps
  • IP ownership disputes
  • Contract termination clauses

Financial Risks

  • Revenue concentration
  • Working capital constraints
  • Debt covenant triggers
  • Off-balance sheet liabilities
  • Earnings quality issues
  • Revenue recognition anomalies
  • Related-party transaction flags

Commercial & Market

  • Customer churn patterns
  • Competitive displacement
  • Pricing pressure
  • Market share erosion

Technology & IT

  • Technical debt levels
  • Security vulnerabilities
  • Integration complexity
  • Key system dependencies

Human Resources

  • Key person dependency
  • Retention risk post-close
  • Cultural integration
  • Compensation gaps

Cross-Category Analysis

Risks don't exist in isolation. Our AI identifies dependencies and cascading effects across categories to surface compound risks.

Dollar Quantification

From Risks to Dollar Values

Every risk is quantified so you can make informed investment decisions

Dollar-Value Impact

Every risk is quantified with low, mid, and high impact estimates in actual dollar terms.

Probability Scoring

AI estimates the likelihood of each risk materializing based on document evidence and patterns.

Materiality Ranking

Risks are ranked by expected value (probability × impact) to prioritize due diligence focus.

Sensitivity Analysis

See how identified risks affect valuation across different scenarios and assumptions.

Example Risk Output

CommercialHIGH

Customer Concentration

Top 3 customers represent 58% of ARR. Loss of any single customer would materially impact valuation.

Probability65%

Low

$2.5M

Expected

$8.2M

High

$15.0M

LegalMEDIUM

Pending Litigation

Patent infringement claim filed Q2 2024. Management estimates low probability of adverse outcome.

Probability40%

Low

$500K

Expected

$2.1M

High

$5.0M

HRMEDIUM

Key Person Dependency

CTO holds critical relationships with top 2 customers. No succession plan documented.

Probability30%

Low

$1.0M

Expected

$3.5M

High

$7.0M

How It Works

AI-Powered Risk Detection

1

Document Analysis

AI reads every document in your data room, extracting entities, relationships, and potential risk indicators.

2

Pattern Matching

Trained on thousands of deals, our models recognize risk patterns that humans often miss in dense legal and financial documents.

3

Quantification

Each risk is assigned probability scores and dollar-value impact ranges based on document evidence and comparable deals.

4

Prioritization

Risks are ranked by materiality score (probability × impact) so you know exactly where to focus your diligence efforts.

Real-time detection
Legal Risks3 found
Financial Risks5 found
Commercial Risks2 found
Tech Risks4 found
HR Risks2 found
Total Impact Range$8.2M - $32.5M

Put the 300+ Check Taxonomy Between You and the Close

See how the Risk Engine identifies and quantifies risks in your deals.

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