Legal DD Automation: Review 500+ Contracts in 4 Hours with 92% Accuracy
The Legal DD Time Sink
Legal due diligence for M&A deals typically requires reviewing 500-2,000 contracts manually. At 5-10 minutes per contract, that's 40-80 hours of attorney time at $300-$500/hour.
Total cost: $12,000-$40,000 per deal in legal review alone.
What AI Legal DD Automates
AI-powered legal DD can automatically:
- Extract key contract terms (parties, dates, values, obligations)
- Identify change of control provisions
- Flag unusual or high-risk clauses
- Categorize contracts by type
- Generate summary reports with risk ratings
Time: 4-6 hours vs. 40-80 hours manual
Cost: <$1,000 vs. $12,000-$40,000
Accuracy: 92-96% with human validation
The ROI of Legal DD Automation
Per deal savings:
- Time: 36-76 hours saved
- Cost: $11,000-$39,000 saved
- Quality: Higher consistency, fewer missed clauses
Annual impact (18 deals):
- Time: 648-1,368 hours saved
- Cost: $198,000-$702,000 saved
- Capacity: Evaluate 2.5x more deals