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Use Case · Legal & Tax 

Due Diligence

Automated document review for M&A transactions. AI agent analyses hundreds of documents, extracts key facts, identifies red flags and produces structured reports.

Why Due Diligence Is a Lever

Mountains of documents instead of deal advice

A typical M&A due diligence covers 500-2,000 documents. Contracts, annual accounts, shareholder resolutions, employment contracts, leases, licences, permits, litigation. Every single one must be read, assessed and incorporated into an overall report.

A DD team of 4-6 lawyers needs 3-6 weeks for this. At £200-400 per hour, the document review alone generates costs of £150K-300K per transaction. And red flags still get missed on a regular basis, because after the hundredth lease, attention wanes.

The real problem: the intellectually valuable work, risk assessment, deal advice and negotiation strategy, gets squeezed because the team is drowning in documents. The transaction does not wait, time pressure mounts and quality suffers. This is not a capacity problem. It is a process problem.

How the Process Changes

Before / After

⏱ Before — Manual
Data room opens
500–2,000 documents, often unstructured
Review & sort documents
Manual, 1–2 days just for structuring
⏱ 1–2 days
Read & analyse documents
4–6 lawyers, document by document
⏱ 3–6 weeks
Extract key facts
Into spreadsheets, different formats per person
📊 Not standardised
Identify red flags
Dependent on experience and fatigue
❌ Get missed
Internal alignment
Knowledge spread across individuals
🔄 Multiple rounds
Write DD report
Manually assembled from individual notes
Partner review & finalisation
2–3 feedback loops
Final report
After 4–8 weeks
⚡ After — With Lunatec
Data room opens
Automatic connection
AI agent reads & classifies
All documents, automatically sorted
⚡ 2–4 hours for 1,000+ docs
Automatic key fact extraction
Structured, standardised, complete
✅ Consistent format
Red flag detection
Against review checklist and experience database
✅ 95% fewer missed
DD report (draft)
Automatically generated, by category
📊 Instantly structured
Lawyers review & supplement
Focus on risk assessment
⚡ 3–5 days instead of 3–6 weeks
Final report
After 1–2 weeks
👤 Lawyers advise, AI reads
4–8 weeks 1–2 weeks

per due diligence

1–2 weeks (after) 4–8 weeks (before)
The Solution in Detail

How We Automate Due Diligence

01

Data Room Ingestion & Classification

The AI agent connects to your data room (Intralinks, Datasite, SharePoint or other), reads all documents and classifies them automatically: contracts, annual accounts, shareholder resolutions, employment contracts, permits, litigation.

ABBYY Document Intelligence for OCR and classification. Custom models for legal document types. Automatic language detection for multi-jurisdictional deals.

02

Key Fact Extraction

From every document, relevant facts are automatically extracted: contracting parties, terms, notice periods, change-of-control clauses, liability caps, jurisdiction, material obligations. All in a consistent structure, regardless of document format.

NLP models trained on M&A-relevant data points. Extraction from PDF, Word and scans. Automatic cross-referencing between documents.

03

Red Flag Detection

The AI agent checks every extracted fact against your DD review checklist and an experience database. Red flags are automatically categorised and prioritised.

🟢 Standard – Market-standard, no action required
🟠 Worth reviewing – Legal assessment needed
🔴 Deal breaker – Immediate assessment required

Rule-based checking against configurable checklist. ML-based anomaly detection. Historical comparison with previous DD projects.

04

Report Generation & Review

The AI agent produces a structured DD report draft: executive summary, findings by category (corporate, commercial, employment, real estate, IP, litigation), red flags with context and recommended actions. The team reviews, supplements and finalises.

Automatic report generation in Word/PDF. Integration with your report templates. Track-changes enabled for partner review.

UiPath
Azure AI
ABBYY Document Intelligence
Custom NLP Models
Datenraum-Konnektoren
Results

What Due Diligence Automation
Typically Delivers

70%

Fewer missed
red flags

95%

Weniger übersehene
Red Flags

€100k+

Savings per
transaction

5x

More capacity
for parallel deals

These figures are based on averages across our clients. Your specific results will depend on deal volume, complexity and existing process.

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AI agent monitors deadlines across all matters, identifies dependencies, escalates automatically.

0 missed deadlines
Ready?

How many due diligence projects are you running in parallel?

Let us calculate in 30 minutes what DD automation would deliver for your firm, in days, in pounds and in deals you could take on additionally.

No sales pitch. Just an honest assessment.

120+ Clients.   100% Satisfaction.   7 months to Profitability.

WHAT YOU GET IN THE DISCOVERY CALL

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Identify your best use cases
Based on your industry and process landscape

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Calculate concrete ROI
In Euros, FTE equivalents and time savings

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Show examples from your industry
Real results of comparable companies

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Define timeline and next steps
Concrete roadmap, no vague promises