VIBECODING BECOMES M&A SCREENING TOOL

Vibecoding enables firms to create functional AI replicas of software products, allowing acquirers to assess competitive advantages before committing to purchases. Bain & Company has integrated this approach into its M&A evaluation process, using the technology to determine whether target companies offer defensible market positions. The practice reflects growing due diligence sophistication in software acquisitions. Rather than relying solely on financial metrics or user bases, acquirers can now benchmark a target's technology against AI-replicable alternatives. This shifts focus toward genuine technical differentiation—features and architectures that resist rapid reproduction. The approach carries implications for software valuations. Products easily replicable by AI may command lower acquisition premiums, while those with defensible technical moats could see increased valuations. As Vibecoding becomes standard practice among major acquirers, software companies face pressure to demonstrate capabilities that extend beyond readily reproducible features.