#Japan #Tokyo #AI-OCR #Cloud Legal #NX Wanbishi Archives

Collaboration of AI-Powered Cloud Legal and NX Wanbishi Archives

In a significant move towards transforming the legal landscape in Japan, a23s Co., Ltd., the pioneering provider of Alternative Legal Service Provider (ALSP) solutions through its virtual law firm, Cloud Legal, is joining hands with NX Wanbishi Archives, a group company of NIPPON NEXPRESS Holdings that specializes in document digitization services. This collaboration aims to streamline the legal due diligence process, a critical component of M&A transactions.

Background of the Collaboration

The merger and acquisition (M&A) scene in Japan has seen a notable uptick in recent years, driven by a growing number of small and medium-sized enterprises seeking to optimize operations through effective integration. This trend is largely influenced by a pressing shortage of successors, which has exacerbated issues surrounding business succession. Companies are increasingly leveraging roll-up strategies to consolidate operations and enhance competitive advantages.

With the middle market gaining traction, supporting organizations such as the Small and Medium Enterprise Agency have made strides in establishing M&A support institutions, allowing small transactions to occur at lower costs and at a much faster pace.

However, alongside these opportunities comes the challenge of effectively managing pre-transaction risks, particularly through rigorous legal due diligence processes. The breadth of this due diligence encompasses a plethora of existent documents such as contracts, regulations, and minutes of meetings, often retained in paper format for years. This not only burdens organizations with resource allocation but also raises concerns about the condition of assets collected over long periods.

Enhancing Legal Due Diligence

NX Wanbishi Archives brings decades of experience in data solutions to the table, having serviced various industries including finance, pharmaceuticals, and government institutions. The partnership allows Cloud Legal to offer a robust legal due diligence service that can enhance speed and reliability through the efficient digitization of documents.

Under this collaboration, NX Wanbishi Archives will manage the secure digitization of documents stored in various formats, from cabinets to external warehouses. Their established infrastructure ensures high-accuracy scanning while maintaining confidentiality and security protocols. Once digitized, documents will be connected to Cloud Legal’s systems via AI-OCR and BPO services, enabling seamless data integration. This enables both large-scale M&As and smaller transactions to be handled flexibly.

Advantages of the Partnership

The advantages of this collaboration are manifold. With Cloud Legal's AI-driven legal due diligence, the collaboration integrates sophisticated AI technology to support speedy processing without sacrificing quality or reliability.

• - Efficiency: By reducing the time required for review and checks, legal professionals can focus on high-level analysis and judgment, thereby increasing operational throughput.
• - Scalability: The capabilities can handle transactions of varying sizes and complexities, whether it be substantial mergers or smaller acquisitions.
• - Compliance and Security: With certifications like ISMS27001 and ISO9001 in place, the partnership assures compliance with the highest standards of information security and management.

Additionally, NX Wanbishi Archives can provide ongoing storage and management solutions for the original documents, further rounding out the comprehensive service offering they present.

Future Developments

Moving forward, both companies aim to broaden the collaboration scope to include more facets of legal and regulatory services, including intellectual property and labor due diligence. As the dynamics of business continue to evolve, combining technology with legal expertise will help bridge the gap created by the skill shortages in the industry.

This collaboration not only exemplifies the integration of advanced technologies in legal processes but also aims to address pressing social issues in Japan by enhancing the capabilities of small and medium businesses through improved legal frameworks in M&A and beyond.

For further information, visit Cloud Legal and NX Wanbishi Archives.