Pre-acquisition AI-readiness diligence

Cobalt Energy

Energy · 510 employees · target under evaluation

Full assessment

620,000

Records analysed

5

Connected systems

8

AI blockers found

Capital at risk if acquired as-is: €5,814,371/yr - the data exposure the buyer inherits on day one, before the value-creation plan even starts.

The finding that lands

Counts computed from the data
CriticalSalesforce ↔ SAP

12,528 customers exist as two different companies across Salesforce and SAP.

€16,586,868 of revenue can't be reconciled

The same account is recorded under different names, IDs or addresses in each system. Each one is clean in isolation, so every single-system audit passes them.

Broken for AI: Any AI keyed on customer identity (pricing, churn, lifetime value, next-best-action) trains on a contradiction and ships confident, wrong answers.

CriticalSalesforce ↔ SAP

20,775 of 111,600 customers in Salesforce have no matching record in SAP.

€16,586,868 of revenue sits in a cross-system blind spot

Forecasting and revenue AI can only see half the picture, so projections are built on a partial book.

NotableWorkday ↔ Salesforce

5,357 internal employees from Workday are sitting in the Salesforce contact list.

5,357 records mislabelled as customers

Segmentation, scoring and outreach AI treat employees as prospects, polluting every model trained on the list.

Proceed with conditionsM&A Due Diligence verdict

Viable with conditions - €101K-€187K and 7-8 months to AI-ready.

Cobalt Energy is not AI-ready today, but is a viable target with a defined remediation programme.

How good is the data?

47/ 100 · C

Are they AI-ready?

Not yet

Requires remediation first.

How long & how much?

7-8 months

€101K-€187K remediation

Risks the buyer inherits

Connectivity

CRM, ERP and finance systems don't reconcile to a single customer - expect post-close integration, reporting and synergy capture to slip while identities are resolved.

Provenance & Origin Coverage

No traceable data lineage - AI and analytics outputs won't be auditable or defensible to the IC, regulators or an eventual exit buyer.

Consistency

Formats and definitions diverge across systems - blocks a unified view and clean post-close consolidation.

Completeness

Key fields are missing on a material share of records - models and segmentation will be blind to parts of the book.

Governance

Weak ownership, stale records and thin audit trails - a material compliance and accountability gap the buyer assumes on day one.

Accuracy

High duplicate/error rates - every downstream model, forecast and report inherits and amplifies them.

Conditions to proceed

  • Tackle staleness first - 58% of asset records have not been updated in 12+ months, poisoning forecasting.
  • Bring Connectivity (currently 38) to an acceptable threshold before relying on AI in this area.
  • Bring Provenance & Origin Coverage (currently 40) to an acceptable threshold before relying on AI in this area.

Deal & price consideration

Factor the remediation investment (€101K-€187K) and 7-8 months to AI-ready into your model and 100-day plan. Cross-system reconciliation is the critical path on post-close integration. This reflects required remediation and timeline - not a blanket valuation discount.

Evaluating a real target?

Run this exact diligence on your acquisition pipeline - before you commit capital.

Start a diligence assessment