At LinkSquares, we're passionate about revolutionizing the way legal teams work. Our mission is to empower our customers by providing exceptional service and continuously enhancing our software to deliver unparalleled ROI. We understand that legal professionals face unique challenges, and we're dedicated to providing innovative solutions that help them overcome those obstacles. With our cutting-edge technology, we're transforming the legal landscape and paving the way for a new era of legal operations.
In an effort to provide our audiences with a completely third-party perspective of LinkSquares and its impact on our customers, we commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) that businesses of all sizes may realize by deploying our industry-leading contract lifecycle management (CLM) platform. The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of LinkSquares on their organizations. Overall, the analysis found LinkSquares customers can experience a return on investment (ROI) of 352% over three years.
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed five LinkSquares customers with experience using CLM, which is made up of Finalize, its presignature solution, and Analyze, its post signature solution. For the purposes of this study, Forrester aggregated the interviewees’ experiences and combined the results into a single composite organization.
Before investing in LinkSquares, customers noted how their organizations lacked a dedicated, modern contract management solution. Many were using incredibly basic tools or had contracts scattered across disparate platforms. These limitations led to slow contracting, protracted negotiations between sales and legal, and an inability to effectively comb through old contracts to identify potential risks and opportunities.
After investing in LinkSquares CLM, customers centralized and streamlined their contract management processes for both external and internal contracts. Key results from the investment include significant time savings in creating and signing contracts and the ability to look through all contracts to identify their statuses. This increased efficiency led to an improved time-to-value of sales contracts. It also resulted in an improved compliance environment and less reliance on outside counsel.
Below we highlight the key quantified benefits of LinkSquares CLM for legal teams.
Key Findings
Risk-adjusted, present value (PV) quantified benefits include:
40% of contracting workload recaptured by LinkSquares. LinkSquares CLM enabled customers to simplify and eliminate manual effort for their legal teams. Between automating contract creation, documentation, and searching for terms in new contracts, the legal team more than halves the average manual labor cost per contract.
Reduced outside counsel spending by 86%. Before LinkSquares, customers dealing with contract analysis around mergers and acquisitions (M&A) extensively relied on outside counsel to help perform due diligence on target acquisitions, contracted relationships, and existing material contracts. Additionally, customers leveraged outside counsel to process contracts from the acquired organization. With a centralized database in Analyze and preapproved templates and clauses in Finalize, LinkSquares customers reduced the number of contracts requiring actions by outside counsel from 95% before LinkSquares to 9% after three years.
Reduced probability of risk exposure during contract lifecycle by 75%. LinkSquares makes it easier to identify potential liabilities and obligations in the event of extraordinary circumstances and areas where a force majeure clause is required. LinkSquares can identify areas of liability and obligation in past contracts. With the cost of exposure in the hundreds of thousands of dollars for each contract, customers emphasized LinkSquares CLM was behind the risk reduction.
Increased revenue-generating contracts through improved process efficiency. LinkSquares provides sales teams with alternatives to lengthy back-and-forth emails with their legal team to hammer out the details of a contract. Preapproved templates and clauses give sales teams more autonomy and eliminate a significant amount of time spent on manual tasks. That time is refocused on selling more, thus boosting revenue.
Increased contract value by 15% by addressing overspend. Without visibility into the universe of executed contracts, it’s easy for unfavorable agreements to renew automatically or for legal to overlook crucial, expensive provisions during signings and negotiations. LinkSquares drives improved contract value by making it easier to let contracts expire without incurring penalties, totaling 15% improved contract value by year three after implementation.
There is much more data to dig through than that! If you’re considering investing in LinkSquares, access the full study here.