Mergers and acquisitions (M&A) transactions on the blockchain - You want to know more!
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Mergers and acquisitions
According to wikipedia Mergers and acquisitions (M&A) are transactions in which the ownership of companies, other business organizations, or their operating units are transferred or consolidated with other entities. As an aspect of strategic management, M&A can allow enterprises to grow or downsize, and change the nature of their business or competitive position.
LEXIT is bringing mergers and acquisitions on the blockchain, it will change the outdated way mergers and acquisitions transactions are done. It revolutionary project is aimed at increasing the efficiency and liquidity to M&A transactions, all within one secure space.
IT REVOLUTIONARY APPROACH:
"Lexit will create a marketplace that brings buyers and sellers together, giving them global access to assets and opportunity through the addition of assessors and field experts who help appraise assets with a secure, digital deal room where transactions are finalized quickly with an international network of business partners, to extend reach and promote communication by utilizing blockchain technology, for its security and transparency and through token economics, to incentivize and drive engagement." This way LEXIT aims to reduce the cost and risk for all parties involved.
THE PROBLEM WITH TRADITIONAL M&A MARKET
Pricing Is Difficult is one of the major problems facing the traditional M&A market.
"Buyers want to ensure that they are not overpaying while sellers are naturally angling for the highest reasonable price. without proper guidance, either end of an M&A transaction could have unrealistic expectations that sour the deal."
Counterparties and Experts Are Not Easily Accessible: Most both buyers and sellers often rely on individual contacts to find the counterparties to their transactions, in this case, the search for potential counterparties is often limited to the address books of the participants.
High transaction cost
LEXIT Ecosystem
The LEXIT Ecosystem that has been designed to facilitate the participation of buyers, sellers and experts will feature two major platforms the Lexit Marketplace and Deal Room.
The Lexit Marketplace: It is a global marketplace that will allow sellers of any kind to create auction listings for their companies and IP. LEXIT is free to join, but there is a small listing fee for each auction.
Once sellers post their listings, buyers can either browse through all the sell offers or search for offers with specific attributes, like industry or location. After receiving bids, the seller makes the final decision regarding which bid to accept. Buyers can also communicate with sellers before bidding in order to get more information about the listing.
The Deal Room: It's a virtual Deal Room, a secure space where non-disclosure agreements are signed, terms are negotiated, and transactions are finalized.
While a traditional M&A transaction can take up to two years from start to finish,purchase agreements on LEXIT can be finalized and signed within 12 weeks.
The Role of Blockchain Technology In Lexit Ecosystem
Valuations, bids, and transaction volumes will be immutably recorded on the blockchain via smart contracts. This will help increase the platform security and transparency.
Lexit Technical Approach (Diagram)
The Participants (Diagram)
In a bid to ensure users enjoy a secured and scam free ecosystem Lexit will have it own anti-fraud team
"LEXIT will also employ an anti-fraud detection (AFD)team to monitor all activity on the platform. The AFD team will not give public opinions about transactions. Rather, the team will filter unwanted transactions before they are listed on the platform. Any listings that are suspected to be fraudulent or related to any illegal activity will be barred and reported to the appropriate authorities. As the guardians of the ecosystem, members of the AFD team will be LEXIT employees and undergo a rigorous vetting process before being accepted."
LEXIT Partners (Diagram)
WEBSITE: https://www.lexit.co/
WHITE PAPER: https://www.lexit.co/resources/whitepaper
This project is awesome, pls can I get a link to their bounty thread.