Mergers and acquisitions (M&A) offer all forms of organizations the opportunity to hasten strategic growth. The acquisition of another company enables the buyer to gain access to intellectual property, critical research, human capital and other assets at an increased speed compared to the in-house system. However, the current situation is that the M&A process is outdated and inconsistent. Reports have shown that most US businesses with workers fail in at least five years. Today, it is extremely difficult for sellers to find buyers who can develop a faltering business. Also, buyers are limited by an inconsistent source of deal-flow. In addition, even when a seller and buyer manage to connect each other, it results in a cumbersome process, involving several corporate lawyers, financial advisors, investment bankers, appraisers. Hiring these professionals come at a high cost.
Due to the challenges highlighted above, we believe that it is time to revolutionize the whole process. Just as Airbnb brought innovations to the aggregation platforms and eBay reformed the peer-to-peer commerce, LEXIT will also bring liquidity and increased efficiency to M&A transactions, all within one controlled system. LEXIT seeks to address these issues in the following ways; it gives both the buyers and sellers global access to opportunities and assets, the inclusion of field experts and assessors help evaluate the assets, transactions are completed quickly and promptly with a digital and secure deal room, the global network of business partners facilitate the promotion of communication and wider reach, the use of blockchain technology results in transparency and improved security, and lastly, token economics helps to drive engagement and incentivize the transaction process.
The LEXIT platform comes with two units; the Deal Room and the Marketplace and both are powered via the blockchain technology. The ecosystem – which expedite the participation of LEXIT Global and external partners, sellers, buyers and experts – ensures that M&A opportunities are accessible to any entity or individual, regardless of the size. The marketplace section enables all sellers to create their auction lists either for their IP or companies. Although the platform is free to join but participants have to pay a small amount as listing fee for each auction. After the seller agrees to consider a buy offer, the transaction evolves into the Deal Room Phase. The virtual deal rooms are simply secured areas where confidential agreements and terms are negotiated, signed and finalized. In order to reduce breach or cyber-attacks, robust security frameworks have been built to reduce security breach.
The LEXIT platform is powered via the blockchain technology which helps remove any doubt or mistrust. Moreover, smart contracts ensure that the transaction process is carried out in a transparent manner thereby eliminating the need for all the parties involved to trust one another. Bids, transaction volumes and valuations are permanently stored on the blockchain through the smart contracts. The storage of transactional data on an immutable, tamper-proof shared ledger results in an improved security and transparency. In addition, the P2P transactions powered via the LEXIT internal cryptocurrency and the blockchain technology eliminate all forms of processing fees and extra charges thereby reducing transaction cost and increasing transaction speed.
In conclusion, LEXIT aims to completely revolutionize the M&A process thereby making it seamless, uncomplicated and productive as ever. The increase in market efficiency and liquidity will support and promote growth, and at the same time, reducing risk and costs for all the stakeholders involved. The elimination of barriers have facilitated the completion of M&A transactions at a more reduced cost. Business owners are empowered to evaluate the true worth of their assets in a much more dynamic marketplace, without having to bear the burden of excessive fees.
