Getting Started
Due diligence explained
An overview of the Legatics due diligence module, the key terms it uses and how the pieces fit together.
An overview of the Legatics due diligence module, the key terms it uses and how the pieces fit together.
What is due diligence in Legatics?
The Legatics due diligence module brings the whole diligence exercise into the matter. Instead of tracking requests in Excel, reviewing documents in one tool, logging issues in Word and sending questions by email, your team works in one place:
- Scope the exercise by workstream, either by hand or by importing your request list
- Review documents uploaded to the matter, or work from an index of the seller's data room
- Raise issues yourself, or review issues the AI proposes
- Find gaps between what you asked for and what you have received
- Send DDQs to the other side in rounds and track every response
- Track progress on a single overview, with milestones for key deadlines
Key terms
Term | Description |
Workstream | An area of the business being reviewed, such as Legal, HR, Financial or IP. Almost everything in due diligence is organised by workstream: who can see what, where documents sit, and how issues and DDQs are numbered. You cannot do anything in the module until at least one workstream exists. |
Sub-topic | A narrower area within a workstream, such as Employment contracts within HR. Each sub-topic can carry a check description that tells the AI what to look for. |
Scope | The full set of workstreams and sub-topics the buyer has agreed to investigate. |
Request list | You can import an existing request list to build your scope. |
Document basis | Whether the team works from real documents uploaded to the matter, or from an imported index of the seller's data room. You choose one when you enable due diligence. |
Issue | A finding that could affect the deal, rated Red, Amber or Green (RAG), with a summary, impact and recommendations. |
Gap line | A requested item that the AI has checked against what has been received. Gap lines show what is still outstanding. |
DDQ | A single due diligence question sent to the other side. In Legatics, each DDQ is one question, not a full due diligence questionnaire. DDQs are sent in rounds so the other side receives one combined set of questions at a time. |
Milestone | A key date in the exercise, such as the deadline for the next DDQ round. |
How the module fits together
The module appears as a Diligence area in the left-hand navigation menu of a matter once due diligence has been enabled. It has eight pages.
Page | Description |
Overview | Headline numbers, items needing review, key issues, milestones, workstream progress and recent activity |
Deal details | Deal facts, deal guidance and context documents that ground every AI action on the matter |
Team | Who is on the diligence, their due diligence role and which workstreams they cover |
Scope | Workstreams, sub-topics, priorities and leads |
Documents | The documents (or index entries) being reviewed, by workstream |
Gap analysis | What has been requested but not yet received |
DDQs | Questions to the other side, rounds and snapshots |
Issues | Every issue raised across the matter |
There is a natural order to setting up. Scope comes before Team, because team members are assigned to workstreams. Team members must already be participants on the matter. Deal details can be added at any point, but the AI gives better results when they are complete before you start reviewing.
Common icons and labels
Icon or label | What it means |
AI tag (sparkle icon) | This item was created by AI. Select it to see how it was produced |
Sparkle next to a workstream | The document was classified to that workstream by AI. If a person changes the workstream, the sparkle disappears |
Red, Amber, Green | The RAG rating of an issue |
Locked | The item cannot be edited because a DDQ round is out for response |
Warning triangle on a DDQ | The question may duplicate another question |
Warning triangle on Days open | The gap line has been outstanding for more than seven days |
Stale | The deal facts have changed since this AI result was produced |