LEXIT Whitepaper Analysis #2 - How Lexit Solve M&A Problems
Hello, we meet again for another article about Lexit. This is a continuation of my previous article so you might want to read it first. On this article, we will talk about how will Lexit solve the problems of merger & acquisitions market that we've talked about before. Without further ado, let's continue on.
First Solution: #LEXITco Marketplace, Connecting Buyers and Sellers
As I've told you previously, one major problem in the M&A business is the difficulties to find buyers or sellers. If we want to solve this, then we must have a platform where buyers and sellers or others parties can register with ease and look for what they wanted. And that's exactly the purpose of LEXIT Marketplace.
Sellers (that is, companies who want to sell their IP or other) can make an auction listing. To do this, they have to pay a small fee. Buyers will be able to search and browse that list and propose a deal. Sellers will decide which one to accept, they can also communicate with buyers. It's pretty simple and similar to an online shop. I do believe it will be easy to use and it will take minutes to learn about the platform.
Buyers and sellers can request a support from experts in this platform. They'll give buyers/sellers professional advice and support to get the most profitable deals for the parties involved. After buyers and sellers make a deal about the bid, they will proceed to the next phase in the platform, and that is the (virtual) Deal Room.
Second Solution: Deal Room, Where Transactions Occurs Swiftly
Deal Room is a special place where participants negotiate, signed the agreements and finalizing a transaction. This is the place where both parties communicate and finalize their business, and that's why it will be secured with a robust security framework. Nobody can access this room as they please, only the buyers, sellers and selected experts for each transaction. This mean, for every transaction, there won't be any leaks of data.
Deal rooms aim to solve the problem of imbalance of power between parties involved in transactions that exist in the traditional M&A market. Both parties will be supported with experts that will help to maintain the equality of bargaining power. You can only gain advantages when you become a good actor in the ecosystem, not because you're bigger.
Transactions in the deal room are processed instantly, and finishing purchase agreements can take up to 12 weeks. Compared to traditional M&A market, LEXIT is 800% faster (12 weeks compared to 2 years). Buyers and sellers will only charged a fraction from the traditional fees in M&A market. Because of this, LEXIT can help small-medium business to participate in M&A market successfully and in general, helps a lot of business to participate in M&A market without using too many resources.
Third Solution: Blockchain & Smart Contract as the Technological Foundation
In order to create a marketplace & deal room with the robust speed & security, as you might guess, is the usage of blockchain & smart contract. Both of these will be used to store the transactions details, enforce agreements, process transactions, build the database and so on. I believe I don't have to explain it because you are already familiar with them.
Those are the three solution that LEXIT has. However, there's more to them. You can read the details on https://www.lexit.co or the whitepaper. I suggest you read page 12-18 in details if you want to understand it deeply.
See you later in my next article!