Although the concept of “due diligence” has become widely accepted as any painstakingly detailed process of investigating and verifying the validity of a fact or situation, the phrase takes on a more profound level of meticulous research when used in the context of the legal profession. In other words, for lawyers, due diligence is serious business.
Whether part of an M&A (mergers and acquisitions) or other financial transactions, the practice of due diligence includes a lengthy exploratory process of mining contracts and supporting documentation to understand risks, identify red flags, and determine the suitability of agreements for represented parties and counter-parties.
A dedicated team of lawyers and supporting staff can spend hundreds of hours combing through thousands of pages of documents to complete the due diligence phase of a financial deal. Intellectual property (IP) must be identified, solicited, received, and reviewed — a process that can take months to complete and test the patience and determination of even the most optimistic clients.
If only there was a way to cut down on the time and expense of due diligence . . . a shortcut or mechanism, so to speak, that offered attorneys the ability to serve clients more efficiently by moving through the process more quickly and smoothly.
In fact, there is. Diligence is about to get its due.
Auto-Population of Data Rooms with FileFacets
FileFacets ECM support software facilitates ROT (redundant, trivial, obsolete) processing, content classification, and taxonomy implementation and now offers a revolutionary approach to streamline the due diligence process.
Using FileFacets’ cloud-based portal, attorneys can access client records—and records stored in files at the firm—to auto-populate and compile a comprehensive and complete data room. The system drastically reduces the personnel hours a client must spend finding and organizing records, and it increases efficiency on the lawyer side of the process, too.
Data rooms are constructed, organized, and shared in a secure environment that allows accessibility and controlled collaboration as needed among all stakeholders — clients, legal teams, and investors.
FileFacets supplies a superior method of document compilation that provides:
- Privacy — Ensure security with flexible controls that allow you to determine and assign multiple levels of access
- Organization — Upload thousands of documents and create a dynamic, functional framework
- Ease of Use — Streamline the due diligence process through the identification and extraction of specific and appropriate IP
- Speed — Shorten the M&A life-cycle by slashing hours needed to find, review, and compile documents
- Efficiency — Reduce time spent fixing incomplete documents (missing signatures and exhibits
FileFacets lets users aggregate content before the data room allowing them to find relevant data to upload to the Virtual Data Room. With FileFacets in their tool box, law firms can build better quality, more comprehensive data rooms – offering a higher level of client service and increasing their own capacity for revenue.
Redefining due diligence is just one of the ways FileFacets can help attorneys and law firms maintain and optimize their information governance (IG). Learn more about how incorporating FileFacets into your overall IG plan will address short-term and long-term solutions to common legal industry challenges in our free PDF, Transform Your Legal IG Strategy with FileFacets.