LEXIT Ecosystem

Price incompatibility, expert guidance, and high transaction costs all contribute to the lack of market access to M & A. With this in mind, LEXIT strives to provide solutions to constraints to M & A. Not only are traditional, individual and corporate can now access the benefits of M & A transactions. We do this through platforms comprising Marketplace and Transaction Space and supported by blockchain technology. Our ecosystems that facilitate buyer, seller, expert participation, LEXIT Global Partners, and external partners, have been designed to open up M & A opportunities for any individual or entity, no matter how big or small.

LEXIT Platform

The Marketplace

LEXIT is launching the first global M&A marketplace. Our Marketplace will increase accessibility to global M&A opportunities by allowing 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. Then, acquirers of any size can browse these auctions eliminating the need to scour the globe and exploit personal contacts for promising counterparties. 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

LEXIT Virtual Deal Rooms are secured spaces where non-disclosure agreements are signed, terms are negotiated, and transactions are finalized. Since Deal Rooms will hold confidential documents containing trade secrets, robust security frameworks will be used to reduce risk of breach. Access to each Deal Room will be tightly controlled, open only to the relevant buyer, seller, and selected experts. These experts can be invited to Deal Rooms as described in the “Assessors” section below.

Technical Approach

Both of LEXIT platform has proven and pioneering systems will coexist. We incorporate established technologies (databases, web development frameworks, and smart phone apps) with innovative technologies (blockchain with smart contracting capabilities) aimed at a common goal: to help establish trust among interacting parties throughout all layers of the platform.

LEXIT system will use a webservice that acts as the front end of the platform. This will utilize common technologies like webservers, databases, and web development frameworks. Here is where players will interact: buyers will browse the Marketplace and place their bids, and sellers will create listings and manage buy offers. These capabilities require a repository of currently active listings, a sophisticated search engine, and comprehensive databases that can handle complex queries. As stated, the goal is not only to ensure information is accessible to and usable for platform users, but also that it is sufficiently secured. Since the Deal Room will hold confidential documents, robust and stable information security frameworks will be used to mitigate any risks.

Participant Ecosystem

Screenshot_20180709-131600~2.png

Sellers and Buyers

As described in the “Marketplace” section above, sellers are those with assets that they list on the LEXIT platform. These assets can take the form of a company or IP that the owners wish to sell. Examples of sellers include a company with a patent portfolio or aprofessor who manages the IP of his or her research institution. It is the seller’sresponsibility to provide sufficient information to satisfy listing requirements. Sellers are also expected to interact with buyers and assessors to facilitate the valuation process.

Assessors

During both the Marketplace and Deal Room phases, LEXIT buyers and sellers can access specialized experts who provide personal observations—or “views”—on the listings and transactions. In the LEXIT ecosystem, these experts are called “assessors.”Both independent industry experts and advisory firms can join the LEXIT ecosystem as assessors. Assessors must be vetted and approved in order to participate on the LEXIT platform.

Anti-Fraud Detection Team

In addition to providing approved assessors with the opportunity to write personal views and participate in Deal Rooms, 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.

Outside Service Providers

LEXIT is developing a network of outside service providers to assist buyers and sellers with professional valuation, and advisory, legal, and accounting services. Web links to these service providers will be provided via our online platform. However, any services offered must be agreed upon in a contract that is formalized and signed completely outside of the LEXIT ecosystem. Outside service providers are permitted to become assessors and submit personal views, but they cannot assist in an official capacity unless engaged separately through a contract that is external to the platform. Service providers must abide by LEXIT standards in order to become—and remain—part of our network.

LEXIT Global Partners

LEXIT has established a Global Partnership Program (GPP) in order to generate a consistent deal flow on the platform and to ensure that a variety of companies are included in the LEXIT ecosystem. To this end, LEXIT is establishing partnerships with international accelerators, incubators, startup hubs, industry associations, venture capitalists, and M&A firms.

External Partners

LEXIT has also engaged in partnerships with external entities so that we can enhance our platform’s capabilities at a leveraged pace. These partnerships will help develop the LEXIT ecosystem and offer continued support to our users and partners. Our current roster of External Partners is as follows: