AI Due Diligence Extraction Agent

How Cassidy automates and ingests documents using AI

Step 1: Connect to the VDR and ingest documents

The Workflow triggers when your deal team initiates diligence, connecting to the seller's virtual data room with read-only credentials. Cassidy bulk-ingests all files and metadata, applies OCR to scans, normalizes filenames and dates, and de-duplicates versions to create a clean, searchable corpus.

Step 2: Classify and index by workstream

Cassidy auto-classifies every document—contracts, financial statements, HR agreements, SOC reports, litigation files—and maps them to your diligence checklist. This intelligent index ensures full coverage across legal, financial, tax, IT, and commercial workstreams.

Step 3: Build a retrieval-grounded Knowledge Base

Documents are chunked with clause-aware and table-aware parsing, then embedded into Cassidy's Knowledge Base. Every query and extraction is grounded in retrieved source text, with citations linking to exact page and cell coordinates.

Step 4: Extract structured terms and KPIs

Cassidy pulls contract clauses (renewal, termination, change-of-control, assignment, liability caps, IP ownership) and financial data (revenue by customer, churn, margins, AR aging, debt schedules) into normalized term sheets and datasets ready for modeling.

Step 5: Score against your playbook and flag risks

Extracted terms are compared to your buyer's diligence rubric. Cassidy tags clauses green, yellow, or red based on deviation and materiality, runs cross-document reconciliation (CIM vs. contracts vs. ledgers), and generates a prioritized risk register with severity, rationale, and source citations.

Step 6: Generate cited deliverables

Cassidy produces first-draft IC memo sections, red-flag registers, consent and change-of-control schedules, renewal calendars, and model-ready exports (CSV, Excel, Parquet)—each claim linked to its source for full auditability.

Step 7: Human-in-the-Loop review and iteration

High-severity flags and ambiguous legal language route to your team for sign-off. As the VDR updates, Cassidy detects new or changed documents, re-processes incrementally, and maintains versioned outputs so your diligence stays current through close.