CLM tools can reduce the average sales cycle by 24% and lower the average hours spent on contracts by 20%.
Mergers and acquisitions, skyrocketing market shares, and a revival have one thing in common – contract lifecycle management (CLM) solutions. CLM is back, but it’s bigger and bolder than ever before. Spurred in part due to the rise in pandemic-induced legal tech usage, the rise of CLM is here, and how.
CLM M&A, Many Acronyms, One Goal
A Forbes article notes that CLM service provider Ironclad raised $150 million at a $3.2 billion valuation in financing. Another organization, Evisort, raised $100 million in investment.
On the mergers and acquisitions side, DocuSign has acquired Clause, while Litera announced its acquisition of Kira. LexisNexis has also announced their acquisition of Parley Pro.
These rising numbers and acquisitions signal a seismic shift in the world of CLM, indicating the growing number of service providers and their legal department clients using the tech.
Why CLM Is Legal Tech’s Hottest Favorite
What makes CLM different in our remote-ready and legal tech-powered world are not just the benefits it brings, but what it can offer legal departments – a way to achieve their goals. Artificial Lawyer notes that “organizations want a partner, not just a platform – who will be by their side to guide them on the path to sustainable value and ROI”.
At the moment, legal departments worry about lack of oversight on contracts, and how to review contracts faster without losing revenue. In addition, contracts need to be thoroughly drafted and reviewed, without any margin of human error. CLM resolves all these issues, and more, with automation and 100% efficiency.
What CLM Offers
- Solves legal department worries over contract oversight
- Improves business outcomes
- Mitigates contract-related risks
COVID-19: A CLM Catalyst
Legal disruption through digital transformation in the form of legal tech can be attributed almost single-handedly to COVID-19. The pandemic and a remote-first approach make CLM a legal department necessity, a big jump from being an auxiliary application.
Key management, keeping a tab on financials, realized the importance of CLMs in reshaping their organizational and legal department efficiency. CLM cuts through the noise, allowing for automation of rote tasks that eat into legal department time, instead offering them their time back to work on pressing legal matter.
Organizations have realized the manifold benefits that CLM offers, and how it can eliminate bottlenecks, and mitigate risks. Legal departments, according to iCertis “can no longer afford the risk, delays, and leakage that come with poor contract management”. In addition, legal departments cannot spend another minute passing up the opportunities that CLM offers in terms of rich data, insights and use cases.
CLM isn’t a trend, it’s a vital business tool for legal departments. With CLM automation and AI, end-to-end NDA processing time can be reduced by 70%. That’s not all, CLM tools can reduce the average sales cycle by 24% and lower the average hours spent on contracts by 20%, notes JD Supra! There is no better time to onboard CLM than now.
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