Tags: Healthcare , Deal Support
Deal Support for Buyers
The Challenge: An industry leading corporation conducting multiple acquisitions each year of smaller peer businesses sought to improve its due diligence process by:
- Reducing the overall cost of contract review;
- Establishing a process promoting quality, efficient data gathering, early issue identification, key metrics tracking and real-time communication of critical information to key stakeholders;
- Capturing and retaining the data and knowledge acquired in a manner to provide post-closing benefits, such as facilitating faster post-acquisition integration, as well as creating a post-closing playbook.
Process Implementation: Legility’s project manager designed, in collaboration with the in-house attorney team and outside deal counsel, a tailored project and process workflow that:
- Established clear responsibilities for all parties involved, including Legility’s 7-10 member attorney review team;
- Provided guidance for communication flow and streamlined the intake, analysis and sharing of information to achieve real-time, efficient reporting and decision-making capabilities;
- Allowed for the real-time tracking of key issues/metrics, as well as review time and budget.
Review Technology: Legility’s use of relational database technology (instead of spreadsheets) in the review and abstraction of data not only provided a thorough quality-control process and real-time standardized reporting of metrics to assist with time and budgetary demands, but also allowed for:
- Creation of standardized discrete data-capture fields that minimized the time reviewers spent typing repetitive information and maximized the multi-purpose usefulness of the data – this promoted enhanced consistency in the descriptions of standard contract terms and issues;
- Multiple users to simultaneously access live data in a single place: real-time access by all team members, including in- house and outside counsel;
- Seamless conversion and exporting of contract data in the format needed to import directly into the client’s system without additional clean-up.
Results: In addition to significant hourly rate savings compared to previously utilized review/diligence methods, our collaboration resulted in the ability to:
- Identify and present business-critical diligence information in real-time, minimizing decision-makers’ review time of relevant data and enabling early critical issues identification;
- Track metrics and institute reporting habits, increasing predictability for budgets/timelines;
- Create value-adds such as automated creation of schedules and post-closing playbooks;
- Achieve significant efficiencies and cost savings through seamless conversion and importing of data into the client’s contract management system, reducing completion of post-acquisition data integration to two weeks after closing, compared with six months to one year for previous acquisitions.