Factor, one of the largest and more well known alternate legal service providers (ASLPs), recently announced the launch of something called the Legal Transaction Optimization service. Up to now, Factor has focused its offerings and products to in-house legal departments and law firm clients. But Legal Transaction Optimization is designed to provide law firms tech-enabled transaction management, due diligence, and documentation support to deal teams. In other words, Factor is asking law firms to buy services that would replace work that is being done by support staff and junior associates.
Ed Sohn, Factors Head of Solutions, recently told me just that: the idea behind the offering is to free up junior associates to do more of what they are trained to do. (Assuming for the moment that law school actually trained them to do something). According to Sohn, this will free up lawyers all the way up the experience chain to do more strategic, creative type work.
In particular, according to Sohn, Factor is targeting the following work:
Transaction management, including checklist maintenance, signatures, centralized coordination, document routing, and closing set assembly; Due diligence, including the due diligence questionnaire and the review of underlying documents; and Documentation, including ancillary agreements, contracts side documents, consents, assignments, novations, etc.
Much of this work has historically been done by junior associates and support staff.
Much of this work has historically been done by junior associates and support staff.
Sohn argues that in addition to freeing up lawyers to do more what they should be doing, the program will ultimately enable law firms to be to reduce costs and be more price competitive. Presumably, this will enable firms to win more work and deals.
Factor says its marketing to three groups of law firms. First, firms trying to