Due diligence is central to every M&A transaction. Whether it’s a company merger, acquisition, refinancing or restructuring, the success of each depends in large part on the timely identification, organisation, checking and reviewing of key company information. Optimising due diligence not only reduces the fear of ‘unknown unknowns’ delaying or derailing deals, but it also cuts down on the double-checking and follow-up that slows progress and increases costs.
Why work with Legadex
Today, the most efficient way to optimise due diligence is to contract with Legadex. As lawyers and specialists in legal technology, including virtual data rooms for M&A, we set up and manage secure virtual data room platforms (VDRs) that enable companies and their law firms, accountants and corporate finance specialists to do their M&A work effectively and efficiently. As part of this, we can advise on all the leading VDR platforms, including Datasite, Intralinks, Drooms, Ansarada and Admincontrol.
How we optimise the M&A transaction
An efficient VDR platform offers numerous advantages. It accelerates information sharing, reducing deal timelines. Robust security ensures whatever is uploaded to it remains confidential. Structured presentation prevents information overload, so aiding decision-makers. And workflow features enhance question answering, checking and signing. The Legadex M&A service therefore covers three key phases in the transaction process. These are outlined below.
Legadex benefits at a glance
- Ensure that due diligence is never the hurdle that delays the deal;
- Support law firms, accountants and corporate finance specialists with the data and workflows you require to perform your M&A work effectively and efficiently;
- Make certain that all relevant documents are collected, reviewed and properly presented in the VDR;
- Give (only) the right people access to the right information at the right time;
- Organise company data so it can also be used to help meet future legal compliance requirements, such as ESG reporting, UBO registration and GDPR;
- Create a data repository that management can depend on when making future business decisions.
- Select a VDR
Choose the appropriate virtual data room and customize it for the specific transaction.
- Information Request List (IRL)
Collaborate with company stakeholders to compile the Information Request List (IRL).
- Define and build the VDR structure
Establish an optimal VDR structure by including industry-standard subjects and input from advisors.
- Document collection and upload to VDR
Determine document sources and gather, review, upload, and manage all relevant information in the VDR.
- Legal sanity checks
Facilitate due diligence by running quality and legal sanity checks to ensure compliance.
- Central information role
Act as a data and workflow specialist to support the target company and its advisors.
Identify and redact sensitive information, such as personal data and commercially sensitive details.
- Legal document review
Review specific topics, flag critical items, and prepare comprehensive reports for due diligence.
- Analytics and Artificial Intelligence
Implement advanced AI solutions for data transparency and problem-solving.
Coordinate and manage the Q&A process, offering support in answering bidder questions. Final reports
- Set user access and permissions
Define user access and permissions for the VDR, including bidders and sellers.
- Go live
Perform final security checks, register confirmations, and invite bidders to access the live VDR.
- Final reports
Generate final reports, including a comprehensive VDR index, files uploaded between signing and closing, permission reports, and a final Q&A overview.
- Managing the VDR closing
Lock the data room, prepare USB drives, draft closure confirmations, and identify guarantees and warranties.
- Lock in the gains
Utilize valuable company information gathered during due diligence to maintain an updated data room.
- 100 days integration plan
Use VDR information to handle the legal aspects of the 100-day post-merger integration plan.
- M&A documentation
Process transaction closing documentation for future review and reporting purposes, set alerts for future actions.
- Conversion of data into operational systems
Use VDR data for document management systems, corporate housekeeping, contract management, and ESG.
As one of the first Alternative Legal Service Providers, Legadex is the ideal partner for companies that are about to embark on an M&A transaction process. We are lawyers, so we understand the legal aspects and requirements of M&A. We are legal-tech experts, so we know how to use technology, including Artificial Intelligence, to ensure accuracy, completeness and efficiency.
The Legadex M&A transaction team has over 15 years of experience in handling VDR documentation for large and medium M&A transactions. We’re familiar with the issues because they are part of our daily work. We know what to be aware of when setting up and optimising a VDR, and how to prevent problems arising. We use the latest legal-tech software for classification and analysis, and we align staff experience to the requirements at each step in the process. We can deal with large volumes and scale down fast once the peak has passed. We know how best to employ AI and data analytics to accelerate document collection, ordering, renaming and more. Long story short, we ensure you control your costs, meet your deadlines and execute your M&A transaction successfully.