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M&A due diligence software key features and use cases with detailed

It’s late, and Mark receives their latest assignment–conducting due diligence on a potential merger’s target company. One of their tasks is to look for changes in control clauses in the target’s massive pile of papers.
At his workstation, the user search for any changes of control within all documents uploaded to the internet. He then requests an outline of these rules and is provided, within a matter of seconds, an exhaustive analysis of every language written and annotated.

Document Intelligence demonstration of the product demonstrating an extensive review of assignments and changes in control provisions.

There are better scenarios for lawyers who are buried in documents. It’s a real-world scenario for many businesses that use Document Intelligence.

For many, it’s a tough job that involves reading through every contract and searching for the specific clause, after which they copy and paste the relevant provisions into a document summary (which will be required later to tidy up and organize).

Repeat this process in a loop and for many thousands of records. The process could take several weeks and, with time, can lead to burnout among lawyers.

However, now anyone lawyer can finish their work in the same amount of time required to consume one cup of coffee by using M&A due diligence tools in their firm.

Jump to:

What exactly is M&A Due Diligence software?

What technology is utilized to create M&A Due diligence programs?

M&A due diligence is a feature that every lawyer should know about

Document Intelligence customer reviews

Value-added use cases

What exactly is M&A Due Diligence software?

Due diligence software is a revolution in the way that it operates. It completely automatizes the process of diligence:

by not uploading documents
to analyze and classify the relevant data;
to create diagrams and summary documents.
If, for instance, lawyers need to look through the documents of a seller for non-compete agreements for employees, the software can allow lawyers to complete the task at a speed and efficiency previously impossible to achieve.

In the past, M&A due diligence entailed lawyers digging through piles of paper to analyze the operations of a seller. And even with the shift to digitalization in the decade of 2010, the diligence required lawyers to carry out lengthy analyses and analyses, even though they were now in a virtual deal room.

Although fewer physically-based documents were available, the amount of time spent on analyzing them was not significantly decreased from those of paper. Every composition was examined and quickly scanned for any pertinent details, and lawyers had to hope they got all the important information.

What type of technology is employed to conduct M&A Due diligence?

Artificial Intelligence processes are at the basis of M&A due diligence software. The ever-evolving and innovative technology provides a new level of speed, precision, and depth of diligence review for the entire process.

End users conducting their diligence using AI will input the parameters they want to search for. The AI system will apply these parameters through an automated analysis and documentation process for each specific query.

For example, the user could ask their system to sort and rank contracts with the vendor by:

Date
Duration
The amount
The type of service
or by any other coordinating or other organizing
The procedure typically responds to these requests in minutes and lists all pertinent contracts.

M&A due diligence features are something that every lawyer requires

Document Intelligence, a powerful AI-driven due diligence review tool, is one method lawyers can use to improve their diligence processes to make them faster and more beneficial to the client.

Cost-efficiency and maximizing your client’s potential spending
Utilizing the potential of AI in Document Intelligence, lawyers are capable of:

Classify,
Get information from,
and examine documents at a greater depth that is forensic.
This can be done without charge to the customer. AI systems will likely allow law firms to reduce costs and charge clients less in hopes of increasing clients’ spending.

When you use Document Intelligence, there are no compromises needed to make. Some enhancements can be made across the board, such as the efficiency of diligence processes, precision of the findings from diligence, and the cost of execution.

Rapid review of documents
Clients require answers quickly. Document Intelligence provides them with them.

In a flash, it analyses the documents, categorizes them, and then collects all relevant details from records, even if the total amount is at least tens of thousands.
By scanning each document, Document Intelligence will quickly break it into pieces and effectively transforms the paper into an easily indexable data set.
Then, it records and copies any important clauses the user is seeking.

Pre-built AI models
Practical Law Attorneys and Editors have created Document Intelligence’s AI models. They’re domain-specific and constantly maintained without the maintenance required for the client.

Pinpoint risks
Document Intelligence, with its vast, extensive capability to analyze documents at a granular level, increases the ability of law firms to identify risks.

Red-flag problems like an incomplete trademark application process or potential costly lawsuit could be lost in the shuffle of paperwork and omitted from a thorough review of documents in a hoard.

The facilities are accessible and easily accessible.

Document Intelligence customer reviews

“Using Thomson Reuters Document Intelligence, We’ve saved hundreds of hours required to review documents manually. It was extremely helpful and transformed something that would have been impossible into something quite easy to manage.

“What would easily take 20-25 days, my team can now knock out in just a few days.”

“Whenever you are able to discover the most crucial details within a matter of seconds, it’s extremely effective. We’re not sure if we’ve actually been able to quantify this.”

“Being acquisition heavy, we needed to standardize the way we collect data from sellers…Thomson Reuters Document Intelligence is becoming a very valuable partner in the process of helping us extract impactful data that the seller may not have thought was important.”

 

Request a free demonstration and look at a webcast on Document Intelligence to see how manual M&A due diligence document reviews are gone forever.

Value-added use cases
The lawyer who is using AI can tick off the M&A due diligence checklist very quickly.

? Change of control clauses? Intellectual property holdings
? In-progress litigation? Contracts between vendors and employees
? Document sets are scanned, then checked within minutes. Perform multiple, more complex search results for a specific document set.

After that, the lawyer is provided with an essential set of details about the seller’s operations that can be beneficial to the negotiating process. They’ll be better able to counsel the attorneys conducting negotiations on the biggest red flags for sellers.

Suppose your system detects any unexpected information, such as an upcoming lawsuit or an employment agreement, that could lead to trouble for an after-merger firm. In that case, The lawyer should be able to summarize the concerns in a straightforward method, such as chart form or bullet point summary. The deal lawyers will quickly incorporate the new information into their negotiations and use it to get stronger deal protections or even a price reduction.

By transforming an exhausting and time-consuming job into a profitable enterprise, Document Intelligence enables junior lawyers to provide valuable ways to deal with negotiations and improve their work experience. It’s a transformational process that’s only started.

Chris O’Leary is a freelance editor and writer located in western Massachusetts. He is the editor-in-chief for Thomson Reuters “The M&A Lawyer” and “Wall Street Lawyer,” and
He is also the writer of two books about popular music.

Thomson Reuters hired Raees Nakhuda in October 2021, and he is the director of Mergers & acquisitions for the General Counsel’s Office. Before joining Thomson Reuters, Raees was a senior associate within the Corporate and Securities group at Blake, Cassels & Graydon LLP. His work concentrated on domestic and international financial transactions, such as private and public financings, mergers, and acquisitions. Raees is a graduate of a Juris Doctor degree from the University of Toronto and a Bachelor’s of Business Administration with a concentration in Finance in York University’s Schulich School of Business at York University.

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