Streamlining Precedent Search Workflow: Enhancing Capital Markets Transaction Research

In the context of capital markets, precedent search plays a crucial role in interpreting and applying legal principles to transaction terms. It involves a meticulous analysis of prior transactions to identify relevant legal precedents that can serve as guiding principles in ongoing deals. Having a thorough understanding of how to conduct an effective precedent search is vital for finance and legal professionals, particularly during the due diligence process.

Why is Precedent Search Necessary?

Finance and legal professionals undertake precedent searches to acquire valuable insights derived from completed transactions in the past. This process empowers them to construct market-competitive transactions and make well-informed decisions guided by established legal reasoning. By identifying term-setting principles, comprehending the underlying rationale of precedent-setting transactions, and evaluating the impact of prior decisions on the current market landscape, issuers can better draft announcements relating to material or connected transactions characterized by market best practices. Precedent search ultimately contributes to upholding the integrity and dependability of the due diligence process.

Pain Points in Precedent Search Workflows:

Despite the crucial role of precedent search, the current precedent search workflows are riddled with significant pain points that hinder effectiveness. These pain points include:

  1. Traditional methods: The reliance on manual methods for precedent search, involving labor-intensive tasks such as sifting through extensive volumes of company disclosures and transactional documents, leads to a considerable drain on time and resources. Finance and legal professionals must dedicate substantial hours to reading and analyzing precedents, resulting in potential delays and reduced overall workflow efficiency.
  2. Exchange websites: Navigating stock exchange websites in search of specific filings or transactions, particularly older or less-publicized precedents, poses challenges. Professionals often encounter difficulties in locating relevant transactions, impeding their ability to conduct comprehensive research and gather the necessary information to build strong legal terms.
  3. Search engines (e.g., Google): The vast amount of available information provided in search engines requires sophisticated analytical skills to identify authoritative sources and extract relevant precedents. Also, search engines’ lack of specialization in financial and legal contexts presents challenges in obtaining accurate and precise results tailored to the specific needs of capital markets professionals.
  4. Legal databases: Limited coverage and potential inaccuracies, such as missing or misclassified transactions and indexing errors, compromise research reliability. Costly access further hinders smaller advisory and law firms.

To address these pain points, legal professionals can leverage AI-powered tools for automated transaction analysis and comparison to streamline the research process and help identify relevant and authoritative sources more effectively. By adopting cutting-edge technology, capital markets professionals can enhance the efficiency and accuracy of their precedent searches, overcome obstacles, and conduct more effective legal research.

How to leverage Wizpresso Filingseer for Company Disclosure Precedent Search

Filingseer is an AI-powered search engine that empowers finance and legal professionals to surface relevant information from millions of documents in seconds. Here are a few examples of how Filingseer can help:

  1. Instantly generate all historical disclosures based on the specific context
  2. Find precise information within specific document types or sections
  3. Visualize search results and document trends instantly
  4. Receive notifications on new disclosures published by your clients

Filingseer offers advanced keyword, field, and content-specific search capabilities to cater to your needs. Users can utilize a diverse range of content filters to comb through content quickly and apply additional keyword searches.

Filingseer is also equipped with generative AI capabilities. You can interact with large documents such as annual and ESG reports using the built-in Wizpresso GPT. Ask any questions about a document to get actionable insights and answers.

Learn more about Filingseer https://wizpresso.com/filingseer

Contact hello@wizpresso.com to learn more or request a demo.