In a cross-border transaction, one side is reading documents in a language it does not command, under a tight deadline, with large consequences. Translating everything is too expensive and too slow. Translating too little creates risk you cannot see.
Three levels of need
Summaries for screening
For the thousands of documents that need fast filtering. All that is needed is enough to decide whether the document is relevant. A short summary per document is often more useful than a full translation.
Translation for understanding
For relevant documents the advisory team must read in full. Professional translation is sufficient; the sworn stamp is not yet needed.
Sworn translation
For documents that will become annexes to the agreement, be filed with an authority, or may become evidence. This set is usually small.
Separating these three at the outset can cut cost dramatically compared with treating the whole set as level three.
Documents that almost always land in level three
- Deed of establishment, articles of association and every amendment
- Evidence of title to material assets: land certificates, intellectual property
- Agreements that will be annexed to the share purchase agreement
- Court judgments and documents in live disputes
- Licences that are a condition of continued operation
- Documents to be filed with an authority for transaction approval
Managing an unrealistic deadline
Due diligence deadlines are almost always tight, and document volume almost always exceeds the initial estimate. A few things genuinely help:
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Release documents in stages by priority
Waiting for the complete set before starting wastes the most valuable time in the process.
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Appoint one person authorised to decide terminology
Terminology questions waiting for an answer are the easiest delay to eliminate.
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Agree the output format at the start
Whether it must sit alongside the source text, and whether it needs the same document numbering as the data room.
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Reserve capacity before you need it
Tell the vendor about the coming surge even before the documents are ready. Reserved capacity is cheaper than sudden express service.
Confidentiality on an unannounced transaction
Party names, deal value and even the existence of the transaction are often information that must not circulate. The confidentiality agreement needs signing before the first document is sent, and it needs to prohibit using document content to train any automated system.
Read about NDAs and data security