legaltech & newlaw q219 update€¦ · the legal sector is undergoing a period of significant...
TRANSCRIPT
LegalTech & NewLawQ219 update
July 2019
LegalTech & NewLaw Q219 update | 2
Financial adviser
Buy-side
Acquisition of
Opus 2
International
The legal sector is undergoing a period of significant change like never before. Across the ‘practice of law’ and the ‘business of law’ alike, the combination of new technology
and easier access to data is having a profound effect on how clients access legal services, and how legal professionals deliver them.
Post global financial crisis, in-house legal departments have become increasingly cost-conscious, resulting in them insourcing more work and asking external legal advisers to
do much more for much less. Combined with the paradigm shift of lawyers moving from maximising billable hours to delivering their services on a fixed fee basis, and both
sides suffering from ever-increasing costs, lawyers and in-house legal departments are turning to a combination of LegalTech and NewLaw services to deliver legal services
that are relevant and cost efficient for clients, whilst continuing to be profitable for lawyers.
Investec’s Technology team sees the massive opportunities open to LegalTech and NewLaw entrepreneurs, and the investors backing them. This presentation aims to be both
an update on the current financing and M&A environment, and a primer for those readers newer to LegalTech and NewLaw.
Come and talk to us whether you are a LegalTech / NewLaw services entrepreneur looking to explore strategic options for your business, or an investor / strategic buyer
looking for advice in evaluating and financing a LegalTech / NewLaw acquisition. We can help by providing buyside or sellside advice, raising investment from private equity /
venture capital or via an IPO, or crystallising value through a debt recapitalisation.
LegalTech & NewLaw Q219 update
Forward
Corporate Advisory, Equity Research and Lending Recent ECM and M&A deals & stats
Junya Iwamoto
TMT Corporate Advisory
D +44 (0) 20 7 597 5156
Sebastian Lawrence
TMT Corporate Advisory
D +44 (0) 20 7 597 5215
Omar Ismail
TMT Corporate Advisory
D +44 (0) 20 7 597 4406
Julian Yates
Technology Equity Research
Shaun Mullin
Lending
D +44 (0) 20 7597 4867
Roger Phillips
Technology Equity Research
Rank House Total raisedNo. of
deals
1 Investec £646m 7
2 Jefferies £561m 3
3 Credit Suisse £528m 2
=4 Deutsche Bank £405m 1
=4 JP Morgan £405m 1
=4 Morgan Stanley £405m 1
=4 UBS £405m 1
8 Liberum £341m 2
9 Numis £311m 3
10 Canaccord £160m 1
#1 in Tech & Telecoms IPOs by value and volume (last 10 years) *
Financial adviser
Sell-side
£51m disposal of
MFS to
Silverfleet Capital
Takeover by
Intapp, Inc
Financial adviser
Sell-side
Financial adviser
Sell-side
£64m takeover by
BT Group
Source: Mergermarket, FactSet; includes all Technology & Telecoms IPOs on Main Market or AIM with a fundraise
<$1.5bn (last 10 years)
LegalTech & NewLaw Q219 update | 3
Trade M&A Private Equity M&A Other M&A
Proven track record of helping entrepreneurial high-growth TMT companies
Broad experience in TMT trade and private equity M&A
Source: FactSet; includes all UK public Technology & Telecoms takeover transactions up to $1.5bn deal
value (last 10 years)
LegalTech / NewLaw
£51m acquisition
by Silverfleet
Capital
Financial adviser
Sell-side
Advised on 1/3 of all UK Technology takeovers across a range of geographies (last 5 years)#1 for UK Tech & Telecoms takeovers
(last 10 years)
£18.6bn of UK takeovers in all sectors
(in 2018)
Takeover by
Intapp, Inc
Financial adviser
Sell-side
£480m takeover
by CSC
Financial adviser
Sell-side
£135m takeover by
Daisy Group
Financial adviser
Sell-side
$20m fundraise
and disposal to
Qualcomm
Financial adviser
Sell-side
£174m takeover
by Oxford
Instruments
Financial adviser
Sell-side
£64m takeover
by BT Group
Financial adviser
Sell-side
$700m acquisition
by The Carlyle
Group
Financial adviser
Sell-side
£103m takeover
by Francisco
Partners
Financial adviser
Sell-side
£750m acquisition
of Zenith Group
Financial adviser
Buy-side
£84m takeover by
Severn Trent
Financial adviser
Sell-side
£110m takeover
of Allocate
Software
Financial adviser
Buy-side
£106m takeover
of Ffastfil
Financial adviser
Buy-side
£3.7bn takeover
by Tesco
Financial adviser
Sell-side
£620m takeover
by Teledyne
Technologies
Financial adviser
Sell-side
Financial adviser
Sell-side
£222m takeover
by Advent
International
Disposal to US
brand owner
Financial adviser
Sell-side
£70m takeover
by 2e2
Financial adviser
Sell-side
£68m takeover
of Alterian
Financial adviser
Buy-side
£499m takeover
by The Carlyle
Group
Financial adviser
Sell-side
Acquisition of
Opus 2
International
Financial adviser
Buy-side
£224m takeover
by Montagu
Financial adviser
Sell-side
Acquisition of
GCI Managed
Services Group
Financial adviser
Buy-side
£27.5m acquisition
by Volpi
Financial adviser
Sell-side
£165m takeover by
Daisy Group
Financial adviser
Sell-side
£25m takeover by
ATTRAQT Group
Financial adviser
Sell-side
Acquisition of
YM&U (James
Grant Group)
Financial adviser
Buy-side
Rank House Total valueNo. of
deals
1 Investec £3,043m 18
2 HSBC £2,703m 7
3 Lazard £1,891m 6
4 Canaccord £1,712m 19
5 Rothschild £1,520m 11
6 Jefferies £1,405m 6
7 EY £1,356m 6
8 Goldman Sachs £1,267m 3
9 Evercore £1,239m 4
10 Numis £1,212m 12
£563m
acquisition by
Macquarie
Financial adviser
Sell-side (ongoing)
£300m acquisition of
Ascential Exhibitions
business
Financial adviser
Buy-side
£80m acquisition of
Thoughtonomy
Financial adviser
Buy-side
LegalTech & NewLaw Q219 update | 4
A leading UK TMT capital markets franchise
A long established track record across the equity capital markets
Source: Mergermarket, FactSet; includes all Technology & Telecoms IPOs on Main Market or AIM with a
fundraise <$1.5bn (last 10 years)
Tech Team Research
UK Survey
#1 (2019)
£164m Main Market IPO
Sponsor, financial adviser, sole bookrunner & broker
Investec’s fifth Technology-focused IPO in two years
£165m AIM IPO
NOMAD, financial adviser, sole bookrunner & broker
Second largest Telecoms capital raise at IPO since 2000
£49m AIM IPO
NOMAD, financial adviser, sole bookrunner & broker
Best performing IPO 2016
Rank House Total raisedNo. of
deals
1 Investec £646m 7
2 Jefferies £561m 3
3 Credit Suisse £528m 2
=4 Deutsche Bank £405m 1
=4 JP Morgan £405m 1
=4 Morgan Stanley £405m 1
=4 UBS £405m 1
8 Liberum £341m 2
9 Numis £311m 3
10 Canaccord £160m 1
£10.9bn funds raised in all sectors
(since 2014)
#1 in Tech & Telecoms IPOs by value and
volume (last 10 years)
Research team rated TOP 3 (last 5 years)
Top 4(last 5 years)
In the board rooms of 17 listed clients 5 TMT IPOs (last 5 years)
£309m Main Market IPO
Sponsor, financial adviser, sole bookrunner & broker
Largest fundraising at IPO in Software since Autonomy
£122m Main Market IPO
Sponsor, financial adviser, sole bookrunner & broker
UK’s largest Technology IPO in 3 years
Media Team Research
UK Survey
£100m placing
NOMAD, sole financial adviser, sole bookrunner &
broker
£160m placing to fund $300m US acquisition
Joint bookrunner
£130m placing to part fund the acquisition of Audio
Network
Joint bookrunner
LegalTech & NewLaw
Q219 updateFunding / M&A backdrop
LegalTech & NewLaw Q219 update | 6
16
56
32
76
25
100
37
131
295
114
64
248
110
17
22
15
25
22 21
22
34 33
24 26
32
18
-
5
10
15
20
25
30
35
-
50
100
150
200
250
300
Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 Q119 Q219
VC
fundra
ises (#
)VC
fundin
g (
£m
)
Funding (£m) Fundraises (RHS)
81%
4%
15%
67%
26%
7%
M&A bolt-on opportunities
VC funding stats: Q219 funding down vs a tough comp in Q218
LegalTech & NewLaw Q219 update
VC & growth equity continue to invest into the space through Q219, albeit fewer blockbuster cheques
Q219 selected funding rounds
Date Company Country Overview Quantum Stage
Apr 19 USAI for patent / other IP protection
applications$2.6m Seed
Apr 19 IREAI-based eBilling and spend
management software$8.5m Series A
Apr 19 US Legal search platform $10.3m Series B
May 19 AUS Legal automation and bot platform A$1m Seed
May 19 USBlockchain smart contracts to oil and
gas companies$6m Series A
May 19 US Legal automation platform A$4.7m Series A
May 19 UKLegal risk profiling platform for real
estate deals£1.2m Seed
May 19 USIntelligence process automation
platform, focused on AI$4.1m Series A
May 19 UKCloud-based LegalTech platform for
fundraising workflow$4m Series A
May 19 UKAI-based data integration software
platform, with strong eDiscovery$11m Series A
Jun 19 FRATransaction files for property
transactions€2m Series A
Jun 19 US Cloud-based time keeping platform $50m Series A
Jun 19 FRA Contract analytics €4m Series A
Jun 19 US Law company $25m Growth
Jun 19 USPlatform to automate and integrate
commercial contracts$5.5m Series A
VC funding by region (US, UK, RoW): US continues to dominate
70%
23%
7%
70%
23%
7%
US UK RoW
FY18
£604m
Q218
£295m
Q219
£110m
Source: Mergermarket, Pitchbook, company websites, Investec analysis
Note: Only Western Europe & Nordics, Israel, North America, Japan and Australasia ‘developed markets’ considered
VC funding analysis includes only announced funds raised
LegalTech & NewLaw Q219 update | 7
-
5x
10x
15x
20x
25x
LegalTech & NewLaw Q219 update
Legal sector exposure remains attractive to generalist PE and non-legal players alike, as well as trade buyersSelected recent M&A multiples – EV/EBITDA Q219 selected M&A deals
Date Target Bidder CountryTrade /
PEEV
Apr 19 US Trade -
Apr 19 US Trade -
Apr 19 UK Trade £16m
Apr 19 US Trade $215m
Apr 19 US Trade -
Apr 19 AUS Trade -
May 19 US PE -
May 19 UK Trade £16m
May 19 US Trade -
May 19 US Trade $35m
May 19 SING Trade $63m
May 19 UK PE £50m
Q219 M&A volumes in line with recent elevated quarters
-
5x
10x
15x
20x
25x
LFY NFY
Source: Mergermarket, Pitchbook, company websites, Investec analysis
6 6 5
9
12 13
6
14 15 15
14
12 12
-
2
4
6
8
10
12
14
16
Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 Q119 Q219
Deals
(#)
Deals (#)
LegalTech & NewLaw Q219 update | 8
6x
8x
10x
12x
14x
16x
18x
20x
Jun 17 Sep 17 Dec 17 Mar 18 Jun 18 Sep 18 Dec 18 Mar 19
NF
Y E
V/E
BIT
DA
LegalTech / Legal B2B content consolidators Legal B2B data, content & events
(1.8%)
5.4%
15.3%
74.7%
83.4%
(50%) - 50% 100%
Share price increase / (decrease) since IPO
LegalTech & NewLaw Q219 update
Public markets are increasingly valuing Legal sector exposure
Re-rating for Legal-exposed companies (ex-law firms) Positive law firm share price performances since IPO
15.3x
12.2x
225.0%
Legal-focused IPOs coming to market?Public markets investors are now educated in the structural changes underway in the Legal sector, as this
investment thesis underpins their participation in recent law firm IPOs in the UK (and Karnov IPO on Stockholm
exchange)
Investors’ only current method of directly accessing this investment thesis is via law firms, or via the broader
LegalTech / Legal B2B consolidators
Institutional investors would be keen to invest in pure-play LegalTech / NewLaw services players who benefit from
IP and operational leverage inherent in software / tech-enabled services models
Note: “LegalTech / Legal B2B content consolidators” index includes: RELX, Thomson Reuters and Wolters Kluwer; “Legal B2B data, content & events” index includes Bloomsbury, Centaur Media, Euromoney, Informa and Karnov
LegalTech & NewLaw
Q219 updateValuation backdrop
LegalTech & NewLaw Q219 update | 10
Valuing your LegalTech / NewLaw business
LegalTech & NewLaw Q219 update
Note: EBITDA: earnings before interest, tax, depreciation and amortisation
* Trade buyers will look at profit before and after cost synergies are taken into account
Valuation multiples
EV / Revenue
EV / EBITDA*
Price earnings
Financial forecasts
(focus on LTM / FY+1)
Revenue
EBITDA*
Net income
x
x
=
Valuation
How do buyers / investors value businesses? What are buyers / investors looking for?
Strong market position (first-to-market, leading technology, scale)
High recurring / structurally repeating revenues
Sticky, blue chip customer base
Attractive profit margins*, expanding from operational leverage
High level of cash conversion
Platform to scale
Proven management team
M&A bolt-on opportunities
LegalTech & NewLaw Q219 update | 11
3.3x
2.7x2.3x
1.5x 1.6x
6.1x
3.7x
4.7x
2.9x2.5x
0x
1x
2x
3x
4x
5x
6x
7x
UK StructuralGrowth - Software
UK StructuralGrowth - IT
Services
Tech-EnabledServices
UK Software UK IT Services
11.0% 11.3%14.6%
4.4% 5.1%
35.1%
15.1%
18.8%
14.1%
17.3%
0%
5%
10%
15%
20%
25%
30%
35%
40%
UK StructuralGrowth - Software
UK StructuralGrowth - IT
Services
Tech-EnabledServices
UK Software UK IT Services
12.1x
15.1x
10.5x
8.1x 8.9x
22.3x
19.5x
16.4x15.2x
10.0x
6x
8x
10x
12x
14x
16x
18x
20x
22x
24x
UK StructuralGrowth - Software
UK StructuralGrowth - IT
Services
Tech-EnabledServices
UK Software UK IT Services
16.7% 17.0%
22.3%
17.6%15.9%
28.2%
19.0%
29.4%
26.0%
22.4%
0%
5%
10%
15%
20%
25%
30%
35%
UK StructuralGrowth - Software
UK StructuralGrowth - IT
Services
Tech-EnabledServices
UK Software UK IT Services
LegalTech & NewLaw Q219 update
Benchmarking valuation and performance by peersFY19 EV / Revenue FY18-19 Sales growth (n.b. not organic)
FY19 EV / EBITDA FY19 EBITDA margin
Source: FactSet, 30 June 2019
Note: Calendarised to 31 December
‘Structural Growth’ comparables are companies supported by underlying structural growth drivers (e.g. Legal sector structural change)
Median
Interquartile range
LegalTech & NewLaw Q219 update | 12
Optimise these KPIs to lock-in a premium valuation*
Characteristics Traditional UK Software UK Structural Growth Software
Business model Min Max Min Max
Revenue visibility
(recurring / structurally repeating)50% 80% 60% 90%
Revenue growth
(organic)5% 15% 10% 20%
Margin profile
(EBITDA margin)15% 40% 15% 25%
Cash conversion
(EBITDA – op. FCF conversion)80% 100% 70% 120%
Forecast revenue / profit momentum Limited revenue / profit upgrades likely Strong revenue / profit upgrade momentum likely
Internal characteristics
Ownership of bleeding-edge IP Embedded, defensive Strategic
Industry drivers At least neutral Must be strong
Competitive positioning Defensive Strong / expected to be strong in future
Track record Mixed Earnings upgrades realised previously
Client concentration Typically low Mixed
NFY EV / Revenue multiple 1.5x 3x 3x 6x
NFY EV / EBITDA multiple 7x 12x 12x 30x
LegalTech & NewLaw Q219 update
Source: FactSet, 30 June 2019
Note: * Valuations focused on LegalTech software, however KPIs equally applicable to NewLaw services
‘Structural Growth’ comparables are companies supported by underlying structural growth drivers (e.g. Legal sector structural change)
LegalTech & NewLaw:
thoughts of the quarterAddressing potential investor / buyer concerns
LegalTech & NewLaw Q219 update | 14
LegalTech & NewLaw: thoughts of the quarter
Addressing potential investor / buyer concerns, particularly gorillas entering the LegalTech market
Google / Salesforce entering the LegalTech market?! Focus your investor / trade buyer messages on these points
Potential concerns… …and how they can be addressed by your positioning
Market positioning of
your area of
LegalTech
Break down your total addressable market, and prove
that your categorisation area within the TAM is an
explicit area of spend
“Just another
add-on for ERP
or larger workflow
vendors?”
Increasing competitionBreak down the multiple layers of your LegalTech
functionality built over time and industrialised with
clients, your product focus and differentiation
“If this space gets
hot, [Google] will
just throw money
at it”
Demand timing /
pipeline velocity
Explanation of the secular / company drivers for growth
and why the market is moving in your favour, ROI
analysis for clients, customer due diligence
“This LegalTech
solution area has
been around a
while”
Direct vs. channelExplanation of direct / indirect strategy, investment in
infrastructure to help your channel partners, and sales
economics which incentivise partner sales success
"How will you
scale the
business via the
partner channel?"
... killer question...
LegalTech & NewLaw:
a fundamental changeOverview / primer
LegalTech & NewLaw Q219 update | 16
LegalTech & NewLaw: a fundamental change
Setting the scene – looking at the UK legal market
+150,000 UK practising solicitors*
£25.7bn UK gross billings by law firms**
~10% YoY UK gross billings growth**
75% of law firms now spending 4%+ of
gross billings on IT***
(historic average @ 4%)
65%of law firms prioritising LegalTech
spend into Artificial Intelligence***
30%-50%of tasks carried out by junior
lawyers that could be automated
by LegalTech****
Source: * ~140,000 England & Wales (Solicitors Regulation Authority, Feb 19), ~11,000 Scotland (Law Society of
Scotland) / ** UK Top 200 law firms, The Lawyer, Oct 18 / *** The Lawyer & HSBC LegalTech spend
survey, Nov 18 / **** “How Legal Technology will change the business of Law” BCG report, Jan 16
LegalTech & NewLaw Q219 update | 17
LegalTech & NewLaw: a fundamental change
Macro factors facing both law firms and in-house legal…
Law firms In-house legal
Cost conscious
clients: lawyers
doing ‘more for less’
Insourcing more
work without
sacrificing quality
Lower volumes
of paid
instructions
Cost price inflation
Billable
hour to
fixed fee
Legal
Services Act
2007
Millennials entering the workforce:
Digital natives = consumerisation of IT / BYOD
Fragmentation of spend beyond
LexisNexis / Westlaw
Data
explosion
Shift from in-house legal
as cost centre to
strategic business
partner
Increased
regulatory
burden
LegalTech & NewLaw Q219 update | 18
LegalTech & NewLaw: a fundamental change
… plus the ongoing ‘Nexus of Forces’*…
Social CloudMobile Analytics
110010101010
101000001010
101001011111
Crowdsourcing Artificial intelligence(ML / NLP / Expert Systems)
Flexible legal services
delivery
Source: * Gartner-coined term
LegalTech & NewLaw Q219 update | 19
LegalTech & NewLaw: a fundamental change
… are reimagining how legal jobs are done…
ArtisanalPeople jobs
IndustrialProcess jobs
(people supported by tech)
DigitalTechnology jobs
● Advisory
● Complex deal structuring
● Interpretations of statutes and case law
‘at the margin’
● Commercial contracts review
● eDiscovery
● Standard compliance
● Procurement
● Text comparisons
● Document assembly
Source: Chris DeConti (EVP, Axiom Managed Solutions) LegalGeek 2017 presentation
LegalTech & NewLaw Q219 update | 20 Source: “How Legal Technology will change the business of Law” BCG report, Jan 16
LegalTech & NewLaw: a fundamental change
… shifting organisations from ‘pyramids’ to ‘rockets’
Tomorrow
Rocket structure + non-lawyers
Today
Pyramid structure
● High ratio of junior lawyers and paralegals per partner
● Junior lawyer and paralegal levels will be most impacted by
outsourcing and automation
Project
manager
Paralegals
Tech
manager
Legal tech
Partner
Senior
Junior
Outsourcing
services from Law
Companies /
LPOs
Technology
solutions from
‘Legal Engineers’
LawyersOther non-lawyer staff Tech positions
Outsourcing Automation
Outsourcing
LegalTech & NewLaw Q219 update | 21
LegalTech & NewLaw: a fundamental change
Bringing the opportunity to life: a typical law firm
Artisanal Industrial Digital
Commercial contracts
632
Banking & finance
327
Technology246
Compliance & regulatory
201
Other198
Life sciences180
M&A170
Derivatives113
IP92
Employment74
Litigation65
# lawyers by practice area
(illustrative law firm)
2,298 2,298
Source: Chris DeConti (EVP, Axiom Managed Solutions) LegalGeek 2017 presentation
LegalTech & NewLaw Q219 update | 22
LegalTech & NewLaw: a fundamental change
Why is now the inflection point for LegalTech / NewLaw?
Data lakes Tooling Infrastructure
101010
111110
A centralised repository
storing and enabling
access to all structured
and unstructured data at
scaleAPIsOpen
Source Cyber
Access to:
LegalTech & NewLaw Q219 update | 23
LegalTech & NewLaw: a fundamental change
AI in the ‘practice of law’: a very brief overviewTwo approaches to artificial intelligence in LegalTech
Five growth areas of AI-driven LegalTech
Legal Research
Bringing legal information to human decision
makers
e.g. precedent case analysis, eDiscovery
Big Data Law
Using NLP (natural language processing) and ML
(machine learning) to process cases, contracts or
other legal data, identifying patterns and making
predictions about legal outcomes
Computational Law
Using rules-driven or data-driven AI to mechanise
legal decision making, enabling legal domain
experts to create systems that implement specific
legal / regulatory processes
Legal Infrastructure
Building tools and platforms that connect
stakeholders in the legal system in new ways
e.g. NLP / ML platforms to matching clients with
relevant lawyers
Online Dispute Resolution
Helping parties resolve disputes, especially where
going to court would otherwise be costly
Data-driven AI
Statistical AI approach, where AI systems scan
large pools of data, to identify interesting patterns
and/or make predictions about certain legal
outcomes
101010
111110
Rules-driven AI
Knowledge about the law is encoded, so a machine
can engage in legal reasoning on the particular
legal subject matter to provide advice / guidance
Source: Stamford Law School’s Center for Legal Informatics (CodeX) blog, interview with Roland Vogl, 19 Mar 19
LegalTech & NewLaw Q219 update | 24
LegalTech & NewLaw: a fundamental change
Not just law firms undergoing structural change - don't forget in-house legal departments!
Source: CLOC
CLOC’s 12 core competencies represent areas of
focus that every in-house legal department must
manage to have an effective legal function
These competencies also serve as a benchmark to
compare an in-house legal department’s maturity by
breaking down legal operations into “foundational”,
“advanced” and “mature” functionality
LegalTech & NewLaw Q219 update | 25
LegalTech & NewLaw: a fundamental change
The rise of Law Companies
Credit: John Rider, Cognition LLP, "NewLaw v. BigLaw; David Beats Goliath and Joins Him Too"
Sophisticated day-to-day work
Key legal / operational matters
Outcomes can still pose significant liabilities
Requires less subject matter / industry expertise
e.g. governance & risk management, compliance programmes,
litigation management, IP / IT, transactions, contracts
Large scale process and volume work
Volume / rules-based processing work
Minimal legal consideration required
e.g. claims processing, litigation support, contract management
support, compliance process support
High value / high risk / specialised work
Huge ‘bets’ requiring subject matter / industry expertise
e.g. litigation, complex transactions, tax, bankruptcy, cross border
issues
BP
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In-H
ou
se L
eg
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Fir
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LP
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/ L
aw
Fir
m
Man
ag
ed
SV
S
In-H
ou
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OM
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ed
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In-H
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alN
ew
Law
/ L
aw
Fir
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Law Company work
Legal services work types Yesterday Today Tomorrow
LegalTech & NewLaw Q219 update | 26
LegalTech & NewLaw: a fundamental change
Where are we in the digital transformation of legal?
55%
45%
37%
31%
25% 24%
20% 18%
10%
Difficulty getting budget Issues with legacysystems
Deciding what to investin
Lack of time Tech not metexpectations
Lack of knowledge Impelentation overruns Legal framework fortech not complete
Resistance to changefrom the board
Question to in-house GCs: “What is your main challenge in adopting and implementing new LegalTech?”
At first glance there is a paradox between 55% of respondents citing ‘difficulty getting budget’ for new LegalTech implementations and only 10% of respondents citing
‘resistance to change from the board” in procuring new LegalTech solutions
Artificial Lawyer’s conclusion: “the real problem is not that getting the money is impossible, but making the case for getting the money is hard. That is to say, companies
probably have the money, they just need a good reason to give it to you”
In-house legal teams are not currently being successful at making the business case for implementing new LegalTech / NewLaw solutions to their CFOs / CIOs – LegalTech
vendors / NewLaw services providers should therefore focus their pre-sales / sales attention on helping potential clients quantify real benefits and ROI from deploying their
solutions
Source: Clyde & Co Looking Glass Report, 2019
Artificial Lawyer, 15 Mar 19
LegalTech & NewLaw:
getting up to speedJunya’s recommended reading list
LegalTech & NewLaw Q219 update | 28
LegalTech & NewLaw: getting up to speed
Junya’s recommended reading list
Source Overview
Bucerius Center on the Legal
Profession
Studies, analyses and publications covering the business of law and
the practice of law, including BCG’s ‘Pyramids to Rockets’ paper
2016 Law Institute of Victoria -
George Beaton address
“Remaking Law Firms” covers the transition from the old ‘BigLaw’
business model to the ‘NewLaw’ model
Beaton Capital Madrid Legal
Forum address
Comparing ‘BigLaw’ to ‘NewLaw’ and an overview of major trends and
structural changes in the Legal market
'Capturing Technological
Innovation in Legal Services'
The Law Society report covering insights from those on the frontline of
technology change in the UK legal sector
General LegalTech / NewLaw macro overviews Twitter follows
Source Overview
Above the Law
@atlblogLegal industry blog
Bloomberg Law
@BLawBloomberg’s legal industry coverage
InsideLegal
@InsideLegal
Promoting the LegalTech industry, with JoAnna Forshee and Jobst
Elster
Law Made
@lawmadecomLegalTech focus
Legaltech News
@Legaltech_news
Covering the LegalTech community (part of law.com, owned by ALM,
the legal B2B publisher)
Liam Brown
@liamjmbrown
Founder and Executive Chairman of Elevate Services, the Law
Company
Richard Susskind
@richardsusskindAuthor of ‘The Future of Law’ and ‘The Future of the Professions’
Rick Seabrook
@RickSeabrookMD, Europe of Neota Logic, the AI-powered expert system
Six Parsecs
@sixparsecsFocus on LegalTech research, data and analytics topics
Blogs
Source (and Twitter) Overview
Artificial Lawyer
@ArtificialLawya
AI and legal automation news and views by Richard Tromans, strategic
adviser and LegalTech / NewLaw analyst
LawGeex
@lawgeex_LegalTech blog of the contract review automation vendor
LawSites
@bobambrogi
LegalTech / NewLaw blog from Bob Ambrogi, the godfather of
LegalTech
Legalcomplex
@legalpioneer LegalTech / NewLaw and RegTech funding data, and commentary
Legal IT Insider
@legalitinsider
News, information and commentary – including the very useful UK
Legal Top 200 tech vendors list
Legal Mosaic
@legalmosaic
Blog of Mark Cohen, Chief Strategy Officer at Elevate Services and
Legal / LegalTech commentator
Prism Legal
@ronfriedmann
Strategic LegalTech blog by Ron Friedmann, lawyer and technologist –
a key pick
LegalTech & NewLaw Q219 update | 29
LegalTech & NewLaw
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