A New Frontier for M&A Transactions

Mergers and Acquisitions (M&A) provide organizations, both large and small organizations, with opportunities to accelerate strategic growth. By purchasing another company, the acquirer can gain access to critical research, intellectual property, human capital, and other assets at a much faster rate.

Problem

If we look for the moment, this M & A process has been outdated and flawed. According to the Small Business Administration, roughly half of US businesses with enough employees, have failed in five years. When businesses fail, they often take their knowledge, technology, and human resources with them. Until now, there has not been an efficient way for sellers to find buyers who can brighten the brightness of a shaky business. In turn, buyers usually do not have a consistent source of flow-transactions outside their inner circle. In addition, even when buyers and sellers manage to find each other, the process itself is unfair, involves the battery of corporate lawyers, investment bankers, financial advisors, appraisers and all of them come at high cost.

LEXIT Solution

The LEXIT Solution allows for M&A processes to be concluded four times as fast, at about a quarter of the traditional costs. Entrepreneurs are empowered to discover the true value of their assets on a vibrant and highly liquid marketplace, without having to bear overpriced prepayments. And most importantly - for the first time an efficient market for IP and patents is established, allowing companies to trade assets as conveniently as one would buy or sell a car or real estate.

LEXIT will bring increased efficiency and liquidity to M&A transactions, all within one secure space. LEXIT do this in the following ways:

With 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.

By knocking down the barriers of the past, LEXIT enables M&A transactions to close more quickly, at an estimated quarter of the cost. Entrepreneurs are empowered to discover the true value of their assets in a dynamic and highly liquid marketplace, without having to bear excessive fees. By establishing an efficient market for corporate assets—including patents and intellectual property (IP), we are making these transactions as accessible as real estate transactions have become thanks to online property marketplaces.

Simply put, LEXIT aims to make today’s mergers and acquisitions as uncomplicated, seamless, and lucrative as ever by revolutionizing the way these transactions take place. The increased liquidity and market-efficiency will promote innovation and suppor growth, while reducing costs and risk for all parties involved.

by replacing expensive and inefficient mediators with a distributed network of independent assessors and matchmakers.

On LEXIT's easy-to-use marketplace, buyers and sellers meet directly, en masse, allowing market forces and network dynamics to bring M&A to unparalleled speeds

M&A Opportunities and Challenges

From small local businesses to innovative start-ups to billion-dollar corporations, a wide range of actors can benefit from participating in an M&A transaction. However, these transactions are not always accessible to those without the right resources or connections. Before addressing how LEXIT intends to change this, it would be useful to describe the current M&A environment.

Companies Undertake M&A Transactions

Mergers and acquisitions allow ventures that are fledging or struggling to find support while giving established companies the opportunity to attain the tangible or intangible assets that enable them to reach greater heights. It is often easier to obtain a license, patent, or source code from outside of the company than to utilize valuable hours and funds to perform research and development from within. The acquisition of a local company, specialized start-up, or innovative technology can help an established company enter new markets more quickly than if that company attempted to expand organically.

From the perspective of the acquisition targets, these transactions can provide the financial and legal resources needed to continue their work. For example, a larger company can offer the financial support that a cash-strapped venture might need to survive. In the case of a small company that owns intellectual property, having access to legal resources is essential. This is because individuals and small companies often find it prohibitively expensive to assert their IP rights in a court of law—especially if they are up against the legal teams and deep pockets of experienced corporations. In these situations, it makes sense to be acquired by a larger company that can better protect the intellectual property.

It is therefore clear that there are a range of benefits for both buyers and sellers in M&A transactions. When more participants are able to take part in such activity, a healthier business environment is created for all. Unfortunately, as outlined below, access to this market is often restricted for a variety of reasons.

Barriers to Accessing the M&A Market

What we think of as modern M&A activity has existed since the late 19th century.2 As would be expected from anything that has been around for over 100 years, the M&A process is in need of an update in order to better serve the requirements of today’s buyers and sellers. At present, the internet, coupled with blockchain technology, is moving the world toward more decentralized, democratized ways of doing business. Archaic systems powered by opaque negotiations, powerful inner circles, and high costs are quickly becoming outdated.