Automating Legal Documents for Due Diligence

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Legal due diligence is more than just kicking the tires of an automobile. It is a thorough review that includes lawyers and CPAs who review documents as well as facts. It requires the analysis of a broad range of focus areas, including a legal review of material contracts and litigation liabilities, intellectual property, regulatory compliance, corporate documents as well as financial reviews of accounting policies and financial statements, and tax returns. It also includes an operational review of the company’s management organization structure, organizational structure, sales, products, services, marketing facilities and equipment, supply chain, customer relations and distribution channels, as well as competition.

Legal due diligence can be a long-winded procedure, depending on the nature of the business and the amount of money involved in the medicaldataroom.com transaction. This is especially the case for large companies with virtual piles of data that lawyers must sort through. As a result, many legal departments have started to utilize technology to simplify and expedite the process, such as a document review platform which integrates with AI tools.

Before starting the legal due diligence process, set a framework and goal for the investigation. It is beneficial to create an outline of the key areas that need to be covered and to get the legal team to agree on a plan of action with the business owner. Prioritizing areas that require specialist input is important. A legal due diligence check on an IP holding company, for instance could include questions from an intellectual property specialist to determine whether the company is the owner of any important patents or other intellectual property rights, and whether there are any infringement cases being considered or expected to be filed.