AI and technology advances are shaping the equipment finance industry and playing a role in mergers and acquisitions.
THe Alta Group co-Chief Executive Valerie Gerard and other company execs expect the role of AI and other technologies to expand within the equipment finance sector, they tell Equipment Finance News on this episode of “The Dig” podcast.
“It’s very transformative and the function in and of itself is becoming much more strategic,” Gerard says.
As technology expands and equipment financiers invest more money into its development, there is an increasing need to scale operations to achieve value on the horizon, Rick Remiker, vice chairman of The Alta Group’s global consultancy, tells EFN.
This need to scale will eventually play out in “mergers and acquisitions within the banking space and that’s driven by technology and the need to spend those technology dollars over a larger customer base and a larger deposit base,” Remiker predicts. “The regulatory environment is probably ripe for increased bank mergers and acquisitions … driven by the need for scale.”
Equipment finance M&A evolution
However, the importance of AI in the overall process of M&A will evolve over time, says Jim Jackson, co-chief executive officer at The Alta Group and leader of its merger and acquisition advisory practice.
“AI is still in the infancy stage, so most of the M&A activity now continues to focus on what it always has: the strength of the management team, the profitability of the company, the ability [of] the company to grow their business,” he said. AI “is going to be another leg in the stool that people will consider as we go forward … but I wouldn’t say it’s a major factor just yet.
Tune in to the newest episode of “The Dig” to hear from The Alta Group leadership about lender operations, market trends, mergers and acquisitions, financing environments, rising interest rates, technology in equipment finance and expectations for 2025.
The third annual Equipment Finance Connect at the JW Marriott Nashville in Nashville, Tenn., on May 14-15, 2025, is the only event that brings together equipment dealers and lenders to share insights, attend discussions on crucial industry topics and network with peers. Learn more about the event and register here.
