Five Ways Evisort Speeds Due Diligence for M&A
Acquisition on the horizon? With rising borrowing costs and uncertainties in the world markets, it’s more important than ever to conduct a thorough vetting of your target company. You need to make sure numbers meet expectations, within a tighter window.
Evisort provides a secure, reliable source of truth for conducting due diligence and complex contract review involving multiple stakeholders, tight timelines, and high-stakes outcomes. By using Evisort to analyze and surface relevant data, teams can speed up deals while also saving money on expensive outsourced reviews.
Here are five ways Evisort can help you speed up deals, while also saving money and providing increased confidence, during the due diligence phase of a potential merger and acquisition.
Delays kills deals. Merger and acquisition legal teams need to be able to conduct resource-intensive due diligence as fast as possible in a reliable manner. Evisort works by harmonizing artificial intelligence with the nuance of legal language, resulting in an AI-powered contract management system that drastically reduces the time it takes to review documents. Evisort quickly and accurately scans thousands of documents in seconds, making it possible to review an entire portfolio of contracts and related documents—including vendor, sale, lease, employment agreements and related documents, instead of just a small sample.
Create a better data room.
In the past, due diligence was done in person, with the acquiring company’s lawyers traveling to a secure location, where they would manually sort through hundreds of binders of documents, looking for a piece of data that might raise a red flag. Evisort eliminates the need to travel to a physical data room in order to examine documents. Utilizing a cloud-based system that allows for the secure sharing of confidential information, Evisort easily syncs with multiple types of document storage systems. With Evisort, representatives of the acquiring company can speedily pull files into a secure, central repository and quickly analyze documents from disparate sources without leaving their own offices. And Evisort’s role-based access ensures that everyone who needs access — and no one else — receives the correct access and download rights.
Identify risks quickly.
Time is money, and the acquiring company’s legal teams need to be able to quickly view relevant contracts and review them for key contract data. Evisort’s AI technology can guide you straight to indemnification clauses, renewals, renewals, expirations, uncapped liabilities or burdensome obligations embedded in the sellers’ contracts, which can help determine the level of risk the investment represents.
Performing due diligence involves thoroughly checking the financials of a target company. Among other things, the acquiring company needs to be able to view the selling company’s recurring revenue stream over multi-year contracts and be aware of all financial obligations, deadlines for vendor services, and language governing a change of control in the business. Having that data, quickly, at your fingertips, can help in negotiating a fair purchase price.
Cut costs strategically.
$353K is the average outside legal spend associated with M&A deals, according to the Harvard Business Review. Many of those fees go toward lawyers manually reading through legions of the selling company’s contracts and copying and pasting key clauses, as part of due diligence. Evisort’s AI technology, by contrast, enables legal teams to conduct document reviews much quicker, freeing lawyers to spend more time on strategy, without adding to legal budget. In addition, AI has been shown to be more reliable than human eyes when it comes to document review. With Evisort, you’re not only cutting costs, but also getting a better value on your investment.
Ready to learn more about how Evisort’s contract intelligence capabilities can provide value during the due diligence phase of a merger and acquisition? Schedule a demo today!
Find out how
can help your team
Test Evisort on your own contracts to see how you can save time, reduce risk, and accelerate deals.