LegalTech Inc. Launches "IPO Preparation Document Sharing Workflow" for Food and Cosmetics Companies [LegalTech VDR]

LegalTech Inc. (Minato-ku, Tokyo, President and CEO: Tomoyuki Hirai) has begun offering an "IPO Preparation Document Sharing Workflow" tailored for the IPO preparations of companies in the food and cosmetics industries, for users of LegalTech VDR.

This workflow is a practical process designed to appropriately classify, disclose, and manage the diverse confidential information that food and cosmetics companies face during IPO (Initial Public Offering) preparations, such as quality control documents, pharmaceutical affairs-related documents, intellectual property documents, financial documents, and internal control documents. It aims to support the complexity of document management and information control during the listing examination process.

Background

Document management across departments is a challenge in IPO preparations for food and cosmetics companies.

When food and cosmetics companies aim for an IPO, they encounter multiple industry-specific document management challenges beyond just financial and legal preparations.

In the food and cosmetics industries, regulatory compliance regarding product safety and quality is stringent, requiring the preparation of various documents based on the Food Sanitation Act and the Pharmaceutical and Medical Device Act (Act on Securing Quality, Efficacy and Safety of Products, Including Pharmaceuticals and Medical Devices). During the listing examination, documents proving compliance with these laws are subject to review, necessitating the cross-departmental collection and organization of documents held by quality assurance, pharmaceutical affairs, research and development, legal, and finance departments.

However, in many cases, each department maintains documents using its own management methods, leading to the dispersion of document locations. Furthermore, with multiple external stakeholders involved, such as the lead underwriter's due diligence, the auditor's accounting audit, and the law firm's legal review, managing which documents are disclosed to whom and at what stage becomes complex.

Moreover, IPO preparation is typically a long-term process spanning 1 to 3 years, during which documents are repeatedly updated and replaced. Inadequate version control increases the risk of examiners referencing old versions or inadvertently sharing information that should not be disclosed. Additionally, from the perspective of post-hoc accountability, managing the "when, to whom, and which documents were disclosed" evidence is crucial in the listing examination process.

Main Contents of "IPO Preparation Document Sharing Workflow"

Item

Content

Document Classification

Classified into quality control, pharmaceutical affairs/legal compliance, R&D, intellectual property, finance/tax, contracts, HR/labor, internal control, etc.

Disclosure Stage Management

Stage-specific management according to examination phases such as early listing preparation, preliminary examination, main examination, and pre-application.

Authority Design

Sets viewing scope for lead underwriter, auditing firm, lawyers, and internal personnel.

Viewing Scope Management

Controls disclosure targets at the folder and document level, maintaining information separation between departments.

Viewing Log Confirmation

Confirms viewing status and access history of important documents for evidence management.

Q&A Management

Records and manages questions and answers from examiners, linked to documents.

Replacement/Version Management

Manages updated documents, revised versions, and additional disclosures, supporting centralized management of the latest versions.

Status Management

Visualizes document submission status and examination response status to support progress management.

Main Documents Covered

Classification

Document Examples

Quality Assurance Documents

Quality control regulations, manufacturing process control documents, quality test records, complaint handling records

Pharmaceutical Affairs/Legal Compliance Documents

Pharmaceutical and Medical Device Act related notification documents, Food Sanitation Act compliance documents, ingredient/raw material safety data

Research and Development Documents

Product development records, formulation design documents, safety test data, efficacy evaluation data

Intellectual Property Documents

Patent, trademark, design registration documents, brand rights-related documents, license agreements

Financial and Tax Documents

Financial statements, business plans, cash flow statements, tax returns

Contract Documents

Manufacturing consignment agreements, OEM agreements, sales agency agreements, basic transaction agreements

Human Resources and Labor Documents

Organizational charts, work rules, executive compensation-related documents, labor management documents

Internal Control Documents

Internal control system implementation status documents, risk management regulations, compliance-related documents

Assumed Usage Scenarios

Disclosure of examination documents to the lead underwriter: Gradually disclosing financial, legal, and quality control documents according to the progress of underwriting due diligence.

Response to accounting audits with the auditing firm: Providing financial and internal control documents to auditors during annual audits and quarterly reviews.

Response to legal due diligence by lawyers: Disclosing contracts, intellectual property documents, and litigation risk-related documents to law firms.

Response to reviews of pharmaceutical affairs and quality documents: Providing documents related to the Pharmaceutical and Medical Device Act and Food Sanitation Act to examiners within an appropriate scope.

Collection and consolidation of documents among internal departments: Cross-departmentally collecting and organizing documents held by quality assurance, R&D, legal, and finance departments.

Response to additional questions in the listing examination: Recording and managing answers along with supporting documents in response to questions from examiners.

Management of document updates and replacements: Handling document revisions, additional disclosures, and replacements that occur during the examination period while managing versions.

Support by LegalTech VDR

The M&A platform "LegalTech VDR" provided by LegalTech Inc. can be utilized as a platform to support the operation of this workflow.

LegalTech VDR is equipped with functions such as detailed permission settings for external parties, automatic recording of viewing logs, management of document additions and replacements, and recording of Q&A responses, serving as a foundation to support the practical workflow of multi-layered information disclosure management in IPO preparations.

It is utilized as an environment for continuously managing the evidence of "who, when, and which documents were disclosed" in IPO preparations involving multiple external stakeholders such as lead underwriters, auditing firms, and lawyers.

Product Page: https://www.vdrs.jp Inquiries: https://form.legaltech.co.jp/aos/legaltechvdr/input/

Future Developments

Starting with the provision of the IPO preparation workflow for the food and cosmetics industries, LegalTech Inc. plans to sequentially expand its offerings to include industry-specific and application-specific workflows and templates for sectors such as medical devices, pharmaceuticals, biotech, semiconductors, chemical materials, real estate, construction, finance, and funds. The company aims to support the advancement of document management, information sharing, and decision-making in corporate activities by developing support menus for diverse practical business scenarios, including M&A/due diligence, fundraising, audits/internal controls, joint research/development, licensing negotiations, and litigation/dispute resolution.

Company Overview

Company Name: LegalTech Inc. Established: March 2021 Capital: 379 million yen (including capital reserve) President and CEO: Tomoyuki Hirai Location: Toranomon 40MT Bldg. 4F, 5-13-1 Toranomon, Minato-ku, Tokyo

URL: https://www.legaltech.co.jp/ Business Overview: Development and provision of the patent AI platform "MyTokkyo.Ai", the AI data platform "IPGenius", and the M&A platform "LegalTech VDR"