LEXIT Disrupts The Mergers & Acquistions Industry

                Mergers and Acquisitions (M&As) are transactions in which the ownership of companies, business or their operating units are transferred or consolidated with other entities. Companies undergo M&As to accelerate growth, eliminate costs by downsizing, change the nature of their business, acquire more market share or remain competitive in business. Irrespective of the purpose, the current M&As processes involve myriads of complex issues that must be navigated in order to successfully complete any transaction.

                               Size of Mergers & Acquisitions Industry

Three quarters of the way into 2016, North American and European Mergers & Acquisitions stand at a staggering value of $1.7 trillion. Currently, record amount of deals are being announced. And research having shown that M&A deals can only go up in the long run as companies race to head off disruptive technological threats and accelerate growth, the future is definitely bright for market players in this sector.

              Challenges Facing  The Traditional Mergers & Acquisitions Industry

      Despite the record number of high-profile mergers & acquisitions in the last decade. It is no secret that more than 50% of today’s Mergers and Acquisitions fail. The purpose of mergers can be flawed. Often times, companies overpay for acquisitions as a result of ‘FOMO’--fear of missing out the next technology innovations to the industry competitor or due to the difficulty of estimating a company’s intrinsic value.

 Moreover, factors such as: political complexities (cross-border Mergers and Acquisitions), mountainous layers of bureaucracy, lack of liquidity, centralization by big investment banks (JP Morgan, Goldman Sachs etc.) and the increasingly exorbitant advisory fees contribute immensely to the failures of M&As.

                                      THE LEXIT MARKETPLACE

                

        With the aforementioned challenges hampering the success rates of M&As, #LEXITco, a blockchain startup based in Tallinn, Estonia seeks to revolutionize the Mergers and Acquisitions industry by launching an online marketplace powered by blockchain technology.

       By leveraging the blockchain’s transparent and immutable nature, LEXIT’s round-the-clock marketplace will offer companies/entrepreneurs from every corner of the nations of the world boundless access to a global market where intellectual properties, codes, assets, parts or even a company can be bought or sold at the click of a mouse!

THE PLATFORM 

         Sellers/companies/universities are required to pay a listing fee (at a quarter of costs of traditional M&As) to have their codes, intellectual properties (IPs), assets or startups be listed on the LEXIT’s marketplace. Buyers/investors/companies can browse through the listings, look for certain features based on the information provided by the sellers and place order.

       Then, automated transactions are generated and moved to a secured ‘virtual Deal Phase’ where confidential documents are signed and terms negotiated via smart contracts. The transactions are finalized and the process become traceable on a public ledger, demonstrating a high level of security and transparency.

  Intellectual Properties In Academia

      According to the National Science Foundation (NSF), billions of research funding are expended in the various universities’ laboratories every year. Sadly, less than 20% of the patented inventions from these research leave the laboratories for industry. Since there are no proper channels for universities to monetize these patents other than relying on industry contacts, a good number of them end up in dusty shelves, and are later put up for auction and sold to the highest bidder.

       Often times, these patents fall into the hands of patent trolls--companies that do nothing but amass patents and sue others for patent infringement—consequently stifling innovations.

        Through the LEXIT’s platform, universities will now have unfettered access to a secured marketplace to sell their intellectual properties to companies/innovators sitting in any corner of the globe that most deserve them in a seamless and swift way.

Conclusion

    #LEXITco will not only ensure liquidity and reduce the overall costs of M&As deals by cutting off the middle-men rampant in the industry, it will restore transparency in the system.

      In addition, participants will get a fair deal devoid of over/under payments as price of listings on the platform will be determined by the market forces of demand and supply.

       Startups out there whose failure are not tied to the quality of their projects can bring their products on the platform and sell them

       The M&A industry currently on the suffocating grips of deep-pockets financial firms will be highly decentralized that anyone with an internet enabled smartphone can participate!

 #LEXITco  #TokenSale #Cryptocurrency

For more information,visit: http://www.lexit.co