Is Your Due Diligence Accuracy a 'Known-Known'?

Written by: Noah Waisberg

May 9, 2012

2 minute read

Do you know how accurate your due diligence contract review is? Seriously, do you? Does your team find every relevant change of control provision? 75% of them? Under 50%? How do you know how accurate it is?

If you’re at a good firm, with junior associates hired from top schools and good quality training, you might feel the juniors are finding all relevant provisions they have been tasked to find. But this is a feeling, not a fact. Even good people get tired and distracted. And provisions can be buried in agreements. Those involved in closely supervising diligence know that provisions often get missed. Perhaps you have midlevel associates do a second level review from scratch. But they get rushed and may also missed buried provisions. Again, how do you know how accurate your due diligence is?

Missed provisions in due diligence investigations can be a big deal. You may be giving inaccurate advice if your are basing it on incorrect facts. And incorrect facts can come from faulty due diligence review.

We can help. DiligenceEngine finds 90% or more of almost every provision it covers. We know this based on our automated testing system. While 90% is not the perfect accuracy lawyers strive for, it is very accurate. And actually tested and known. Why not run the system on your agreements and get a more accurate idea of how accurate your diligence is. We can facilitate this process if you’re interested—get in touch! You have nothing to lose, apart (perhaps) from a false sense of security in your due diligence quality. Or not—your current process may be great. At least you will know.

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