Legaltech VDR First Introduced for EMS and Contract Manufacturing M&A, AI Supports Organizing Decision-Making Materials

Legaltech Inc. (Headquarters: Minato-ku, Tokyo; President & CEO: Tomoyuki Hirai) is beginning full-scale proposals for its 'Legaltech VDR' information control platform for M&A cases in the EMS and contract manufacturing industry. The platform supports confidential document sharing, access control, and log management, and now uses AI to assist in organizing decision-making materials before deal evaluation.

In the EMS and contract manufacturing industry, companies must handle diverse information such as manufacturing outsourcing contracts, customer-specific production systems, quality-related documents, defect histories, parts procurement documents, production line information, factory operation status, supply chain documents, and certification-related documents. However, these documents are highly confidential and cannot be shared uniformly with all internal and external stakeholders. Since the information to be reviewed differs depending on the role—such as business divisions, corporate planning, manufacturing, quality assurance, procurement, legal, finance, and external advisors—a sharing design based on differentiated access is required.

Particularly in M&A within the EMS and contract manufacturing industry, cases need to be organized across multiple perspectives, including dependency on specific customers, difficulty of production transfer, quality assurance systems, procurement networks, supply risks, and mass production capabilities. With general file sharing and email operations, folder organization per case, adjustment of sharing scope, version control, and tracking of viewing status often rely on manual work by staff, leading to a heavy burden of reorganizing necessary documents and discussion points before management meetings.

Furthermore, when comparing manufacturing outsourcing contracts, quality-related documents, customer-related documents, and production line documents across the board, it is easy for important documents and comparison points to become scattered, making it time-consuming to organize decision-making materials.

Legaltech VDR supports the following preliminary processes in M&A for the EMS and contract manufacturing industry:

- Organizing confidential document sharing environments for each candidate case
- Access control based on roles such as business divisions, corporate planning, manufacturing, quality assurance, procurement, legal, finance, and external advisors
- Management of viewing logs and audit trails
- AI-assisted document organization, issue extraction, and comparison organization
- Organization of decision-making materials before management meetings
- Information organization when comparing multiple cases, factories, or production lines

This facilitates information sharing and the organization of decision-making materials in a controlled manner to advance cases.

With Legaltech VDR, AI supports the preliminary steps of organizing decision-making materials in M&A, such as organizing candidate case documents, extracting issues, and organizing comparisons. As a result, the company estimates that the task of organizing decision-making materials, which previously took about 3 hours, can be reduced to about 1 hour, a reduction of up to approximately 70%.

The target tasks here are not the entire M&A process, but rather the preliminary steps: organizing documents related to candidate cases, extracting points for stakeholders to review, organizing comparison perspectives, and preparing drafts before meetings. The AI does not make the final acquisition decision; it supports the organization of materials under the premise that humans or experts will make the decisions.

Expected Use Cases

■ Initial Review of Acquisition Candidates
Share manufacturing outsourcing contracts, customer-specific production systems, quality-related documents, and production line information with a limited group of members, and organize the issues to be reviewed for each case.

■ Detailed Evaluation Phase
Share necessary documents with stakeholders including manufacturing, quality assurance, procurement, legal, finance, and external advisors, while providing differentiated access. Make it easier to track who has reviewed which documents and manage the audit trails necessary for case progression.

■ Preparation Before Management Meetings
Organize key issues, comparison points, and reviewed documents for each candidate case, and prepare a draft of decision-making materials for management judgment.

■ Comparison of Multiple Cases
When reviewing multiple acquisition candidates in parallel, organize documents and issues by perspectives such as customer dependency, production lines, quality, supply systems, and profitability, to facilitate comparison.

Legaltech Inc. positions Legaltech VDR not merely as a confidential document sharing tool, but as a platform that supports the preliminary steps of information control and decision-making material organization in M&A for the EMS and contract manufacturing industry. Going forward, the company will strengthen information dissemination by use case for M&A and business restructuring in the EMS and contract manufacturing industry, and will organize the context of use for each manufacturing area, such as board mounting, electronic equipment assembly, OEM, ODM, and electronic component manufacturing, to advance more specific proposals.

Note

The AI functions in Legaltech VDR support document organization, issue extraction, comparison organization, and decision-making material organization in the preliminary stages of M&A cases. They do not perform final acquisition decisions, legal judgments, financial judgments, or management decisions. These are the responsibility of humans or experts.

Product Page / Inquiries

Product Page: https://www.vdrs.jp

Inquiries: https://form.legaltech.co.jp/aos/legaltechvdr/input/

Company Overview

Company Name: Legaltech Inc.

Established: March 2021

Capital: 379 million yen (including capital reserve)

President & CEO: Tomoyuki Hirai

Location: Toranomon 40MT Building 4F, 5-13-1 Toranomon, Minato-ku, Tokyo

URL: https://www.legaltech.co.jp/

Business Overview

Development and provision of the patent AI platform 'MyTokkyo.Ai', the AI data platform 'IPGenius', and the M&A platform 'Legaltech VDR'.

Notes

*Based on company research. This is a verification result under specific business conditions for organizing candidate case documents, extracting issues, and organizing comparisons, and does not guarantee similar results for all cases.

*The AI functions in Legaltech VDR support document organization, issue extraction, comparison organization, and decision-making material organization in the preliminary stages of M&A cases. They do not perform final acquisition decisions, legal judgments, financial judgments, or management decisions.