Archive: March, 2011
On his blog, Law Department Management, Rees Morrison shared that Mark Harris, the CEO of Axiom, referred to a surprising finding from one of his company’s projects. Harris referred to long-term contracts and their “revenue leakage.”
One company, he said, that spent more than $100 million a year on its commercial contracts suffered revenue leakage from them estimated at 5-7 percent. Harris did not elaborate, but it may be that failures to renew or to raise rates or shift costs accounted for that lost income.
Morrison adds that, “Somehow, better contracts should put fingers in some of those dikes or better oversight of executed contracts could [result in] law departments that can claim a portion of the saved money as profit centers.”
We have great clients. And nothing pleases us more than when we can contribute to their success. Take, for example, leading UK law firm Dickinson Dees. The firm originally implemented Exari two years ago to automate information technology and outsourcing agreements. Their experience to date shows that savings of up to 80% can be realized in the time taken to prepare their documents, with even greater efficiencies being available by grouping together associated documents.
Dickinson Dees will now be automating their engagement letters, which are heavily regulated and required, but must be tailored to each client — the compliance department is rolling out a template for use across the 600+ members of the firm. And, they have as yet unannounced plans for further applications.
The Dodd-Frank Wall Street Reform and Consumer Protection Act and recent FSA regulations have put pressure on investment banks and buy-side institutions to consider new methods to manage both legacy and new master agreements (ISDA, CSA, GMRA, GMSLA, IFXCO etc.).
After the financial meltdown of 2008 it became clear just how important it is to have:
- an ongoing understanding of how ISDA master agreements will be affected by the distress or failure of a counter-party or deteriorating market conditions
- the ability to gain quick and comprehensive access to the data embedded in these agreements if those circumstances arise.
Having improved access to critical information and the ability to model contract portfolios against negative events will enable institutions to improve risk controls and operational processes – and ultimately advance the organization’s ability to make more informed decisions.
We are pleased to share the news that Akin Gump Strauss Hauer & Feld LLP has selected Exari to help streamline its clients’ decision-making process and to achieve efficiencies in delivering legal services to its investment fund clients.
One of the world’s largest law firms, Akin Gump serves as counsel to many of the top private equity and hedge funds in the world. We are especially gratified to have been awarded this contract after such a competitive selection process.
So, you’ve worked hard to get the deal done. Now all you need is to hand over the sales contract for the customer’s signature. That’s it. Sounds simple, right? But it may not be. If you’re not careful with that contract it may not be worth as much as you think it is.