The modern legal technology landscape is undergoing significant transformation, driven by a surge in mergers and acquisitions (M&A). On the surface, this wave of activity is driving remarkable growth, empowering organizations to expand their horizons and capabilities. Yet, beneath this facade of expansion lies a compelling issue with which legal entities must grapple. After each merger or takeover, these companies inherit a complex mosaic of technologies that often fail to coalesce. The consequences are far-reaching, from operational inefficiencies to disruptions in client experience.

5 Pitfalls of M&A in Legal Tech

5 Pitfalls of M&A in Legal Tech

While M&A is sure to have stakeholders celebrating, it is the product and the customer that truly pay the price. This approach, in theory, allows organizations to extend their competitive edge and market share.

However, it is not without its pitfalls and complexities. Let’s take a look at five unintended consequences of M&A in the legal tech industry:

1. Technological Incompatibility

Inorganic growth, particularly through M&A, can lead to a hodgepodge of eDiscovery technologies that do not naturally integrate. This lack of interoperability hinders data and information flow, causing inefficiencies and potential data loss.

2. Operational Inefficiencies

When disparate tools and systems are used across an organization due to inorganic growth, operational inefficiencies often follow. Teams may struggle to coordinate and collaborate efficiently, leading to delays and increased costs.

3. Compliance Challenges

Ensuring consistent compliance can be a heavy lift for any legal tech company. An expanded product lineup can also be a daunting task for legal tech companies. Non-compliance risks legal consequences and a loss of trust among clients.

4. Data Security Risks

Given the creation of an estimated 300,000 new malware instances daily, security is a paramount concern. However, if data fails to move securely between tools, the risk of data breaches or information ending up in the wrong hands skyrockets.

5. Customer Satisfaction

A company’s commitment to customer experience should be a top priority. However, when navigating the complexities of M&A, it becomes more challenging to dedicate time to customers’ varying needs. When service quality suffers, client satisfaction naturally follows suit.
These pitfalls highlight the unsustainability of inorganic growth in the evolving legal technology landscape. According to Ryan O’Leary, Research Director of IDC, most industry leaders that employ a “build don’t buy” approach avoid the pitfalls of creating a disjointed “Frankenstein” of eDiscovery technology.

The Need for a Unified, End-to-End eDiscovery Platform

Casepoint recognizes the critical role a unified eDiscovery solution plays in navigating modern legal challenges. What distinguishes us is our homegrown approach — we’ve nurtured our platform with meticulous attention, constructing it in-house to ensure a smooth integration of every facet of the eDiscovery process. While other companies may rely on a patchwork of technologies, Casepoint stands out as a purpose-built solution designed to meet the specific needs of our clients.

Take Level Legal, for example. Our Advanced Analytics facilitated an internal investigation for a global semiconductor client, ensuring timely results and saving $200,000 compared to initial eDiscovery cost estimates. Similarly, Am Law 200 Firm Lewis Roca leveraged Casepoint’s industry-leading legal discovery platform to narrow and deliver client outcomes 50% under budget.

These are the types of results that are possible when leveraging a user-centric, unified eDiscovery platform. Through a seamless integration of enterprise-grade eDiscovery technology — including AI and Advanced Analytics — we empower our clients to navigate the complexities of data discovery and reduce overall legal spend.

The Need for a Unified, End-to-End eDiscovery Platform

The Casepoint Platform illustrates the power and potency of a fully integrated approach, in which technology converges to streamline legal processes and bolster client success. Organizations must navigate the complexities of data management, compliance, and operational efficiency. By embracing a unified, organically grown eDiscovery platform, organizations can embark on a journey towards smoother, more efficient legal workflows, ultimately enhancing outcomes and elevating their approach to legal challenges. It is time for organizations to recognize that the future of eDiscovery lies in unity, efficiency, and the unwavering commitment to client success.

Get in touch with Casepoint’s Corporate Solutions team to unlock the power of a unified end-to-end eDiscovery solution today.
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