--- url: 'https://qubit.capital/blog/legal-tech-due-diligence-acquisition' title: 'M&A Due Diligence Software: The Legal Tech Tools That Speed Up a Deal' author: name: Mayur Toshniwal url: 'https://qubit.capital/blog/author/mayur' date: '2026-03-20T09:44:00+05:30' modified: '2026-10-01T17:15:13+05:30' type: post categories: - 'Investor Insights & Opportunities' image: 'https://qubit.capital/wp-content/uploads/2026/10/legal-tech-due-diligence-acquisition-banner.webp' published: true --- # M&A Due Diligence Software: The Legal Tech Tools That Speed Up a Deal Table of Contents - [Key Takeaways](#key-takeaways) - [M&a Due Diligence Software by Job](#m-a-due-diligence-software-by-job) - [AI Contract Review: Where the Hours Go](#ai-contract-review-where-the-hours-go) - [Data Rooms and Diligence Trackers](#data-rooms-and-diligence-trackers) - [Code, IP and Background Checks](#code-ip-and-background-checks) - [How Far to Trust the Vendor Numbers](#how-far-to-trust-the-vendor-numbers) - [Before You Buy](#before-you-buy) ## Key Takeaways - M&A due diligence software does four jobs: data rooms, diligence tracking, AI contract review, and checks on code and people. - AI contract review targets the heaviest reading in legal diligence, where a deal can involve hundreds of contracts. - Most speed figures come from the vendors. eBrevia claims 30 to 90% faster review, and DealRoom claims 50% less diligence time. - Test any tool on the target’s own contracts, and keep a lawyer checking what it flags. M&A due diligence software speeds up a deal by taking over the reading. Data rooms such as Datasite and Intralinks hold the documents; trackers such as DealRoom and Midaxo run the request list. AI contract review tools such as Kira, eBrevia and Luminance pull the risky clauses out of hundreds of contracts. This page is for investors buying a startup. It sorts legal tech due diligence tools by the job each one does, and marks which speed claims come from the vendors. Code audits and records search, two checks a data room cannot cover, come last. ![Projected growth curve for LegalTech market, 2025–2035](https://qubit.capital/wp-content/uploads/2025/08/market-overview_11zon.webp) ## M&a Due Diligence Software by Job Each tool type does one job. Most buyers work in the seller’s data room and add one or two tools of their own. | Job | What it does | Examples | | --- | --- | --- | | Virtual data room | Holds the seller’s documents, controls who sees what, logs views and questions | Datasite, Intralinks, iDeals | | Diligence tracker | Runs the request list, gives each item an owner, logs findings as risks | DealRoom, Midaxo, Devensoft | | AI contract review | Pulls clauses such as change of control and assignment out of many contracts | Kira (Litera), eBrevia, Luminance | | Document and financial analysis | Reads a whole data room, extracts figures and flags risks with citations | V7 Go, DealRoom AI | | Code audit | Checks the target’s source code for license, security and quality problems | Black Duck Audits | | Records search | Finds companies, people and hidden links in public records | Thomson Reuters Company Investigator, PeopleMap | A data room stores documents but does not read them. The time savings come from the tools that read, sort and extract. ![Flowchart showing stages in automated due diligence with legal tech platforms](https://qubit.capital/wp-content/uploads/2025/08/legal-tech-transforming-due-diligence_11zon.webp) ## AI Contract Review: Where the Hours Go Contract review is one of the costliest parts of legal diligence. A buyer may review [50 to 1,000 contracts](https://sbnonline.com/article/what-to-know-about-ai-and-tech-advancements-in-ma-due-diligence/) for clauses that could block or reprice the deal. Sagar Agrawal, co-founder of [Qubit Capital](https://qubit.capital), says where the hours should go: > “The software will find every change-of-control clause. It will not tell you which one can kill the deal. Spend your lawyers’ hours on the contracts that carry the revenue, and let the tool read the rest.” The software does the first read. It pulls change-of-control, assignment, indemnity and termination clauses into one table. A lawyer then checks what it flags. eBrevia, Kira (now part of Litera) and Luminance all work this way. The speed claims come from the sellers. eBrevia says its software makes M&A contract review [30 to 90% faster](https://www.ebrevia.com/m-and-a-and-other-transactional-diligence). The page shows no study behind the range. Test it on a sample of the target’s own contracts before you budget around it. ## Data Rooms and Diligence Trackers The seller usually sets up the data room, so the buyer rarely picks it. Datasite is a default on large, complex deals, and Intralinks has deep roots in banking and debt deals. Intralinks has added AI to sort uploads and redact documents, and Datasite has built-in redaction. The buyer’s own tool is the diligence tracker. DealRoom, Midaxo and Devensoft hold the request list, give each item an owner and log findings as risks. That replaces the spreadsheets and email threads many deal teams still use. DealRoom says a central tracker [cuts diligence time by 50%](https://dealroom.net/product/diligence), and its AI cuts document analysis time by up to 80%. Both are the vendor’s figures, with no method on the page. Findings logged this way also carry into [integration planning before close](https://qubit.capital/blog/pre-deal-integration-acquisition). ## Code, IP and Background Checks Some risks never appear in the data room. For a software target, the code needs checking for open source license conflicts, security flaws and technical debt. Black Duck Audits does this as a third party, so the target shares its code with the auditor, not the buyer. Code findings feed the wider [review of patents and IP ownership](https://qubit.capital/blog/ip-patent-due-diligence-startup-acquisition). Who wrote the code, and under what agreement, decides who owns it. Background checks on founders, shareholders and linked companies run on public records. Thomson Reuters says its Company Investigator searches [over 305 million business records](https://legal.thomsonreuters.com/en/legal/legal-research-guidance/due-diligence), public and private. No tool judges whether the engineers will stay after closing. That call rests on [interviews with the technical team](https://qubit.capital/blog/tech-and-talent-due-diligence). ## How Far to Trust the Vendor Numbers Almost every speed and cost figure for due diligence software comes from the company selling it. DealRoom, eBrevia and Thomson Reuters publish theirs on product pages, with no method shown. We found no independent study that measures time saved across many deals. Practitioners report real savings on contract review, but they keep a lawyer in the loop. In the same Smart Business interview, Kolesar describes each AI report being cross-checked by an associate. The working test: time the tool on 20 of the target’s real contracts against a lawyer doing the same set. That number belongs in your deal budget, not the vendor’s range. ## Before You Buy Match the tool to the deal’s bottleneck. A large contract book calls for AI review. Many advisers working at once call for a tracker, and a software target calls for a code audit. Diligence ends at closing, and funding the plan behind the deal starts there. Qubit Capital’s [Investor Discovery and Mapping](https://qubit.capital/startup-services/investor-mapping) finds investors who fit a company’s stage and sector. Choose your diligence tools now, and let our team line up the investors for the next round.