Can a blockchain-powered M&A marketplace make such exits more fair to small players?

Aidaa Wong
Can a blockchain-powered M&A marketplace make such exits more fair to small players?

Despite technological advancements, the M&A industry today is still stuck in the past

Existing Challenges in the M&A Marketplace

The M&A marketplace serves many business transactions worldwide. Whenever companies seek to transfer or consolidate their operating units, the M&A marketplace provides them with a ready made system and method which are designed to help these companies grow or downsize according to their needs.

The M&A industry of today is, despite the advancements of the modern day technology and the development of groundbreaking systems, stuck in the past. The process of acquiring patents and other assets from another party is highly costly and time consuming. The process also requires the completion of arduous appraisal procedures and handling of complex legal requirements.

More often than not, smaller entities end up losing out to bigger companies which have more power in the market and have the financial capacity to ensure the requirements are met. Moreover, parties on all sides lose out on unused but valuable intellectual and industrial property that are created during the startup process, which ends up being wasted because it is too complex to find buyers and sell these assets securely.

How Blockchain can Empower the M&A Marketplace

One startup that is innovating the M&A marketplace is LEXIT, which offers an online marketplace for companies seeking to go through the M&A process. The company offers the convenience of having the deals conducted online and buyers having a marketplace which they can browse through to find the perfect investment. Sellers also benefit from having a wide range of potential buyers on the LEXIT marketplace, exposing them to the best possible deals and hence giving the maximum benefits possible.

Also Discuss: e27 discussions, is patience the solution to Southeast Asian M&A woes?

The company is disrupting this space by joining forces with Metaverse, a leading public blockchain to create a blockchain powered M&A marketplace. The use of blockchain in the M&A industry will significantly transform how the entire industry works. The partnership seeks to make the M&A process much faster, cutting down the time during which deals are completed. The newfound efficiency will attract more players to the M&A marketplace due to the effectiveness of the process on a blockchain.

The blockchain-based model is also a low cost environment for the transfer and consolidation of operating units. By saving money for would-be buyers and making the entire process cheaper for smaller entities, the marketplace will be opened up to many more players. Smaller entities will also be able to play on a similar playing field with big companies, giving them equal opportunity and protection of intellectual property.

The blockchain provided by Metaverse will also give LEXIT users the opportunity to register their assets on the secure and immutable blockchain and transact these assets with self-sovereign digital identities. The users will have full control over their assets, and the transparency of the blockchain allows them to see how and where their assets are being used.

The ownership of Digital Assets will fully belong to the developers of said assets, and only they can relinquish the ownership to another identity. Small companies, who in the current market easily lose their property, will benefit immensely from the allowance of full and sovereign ownership of digital assets on the blockchain.

Digital Assets on Metaverse, called Metaverse Smart Tokens (MST), allow users to conveniently and securely generate and distribute their own tokens at low cost. The tokenisation system allows tokens of any value to be created, allowing anyone from small companies to corporations the chance to use this feature and tokenise their intellectual property and assets. These tokenised assets can then be traded on the marketplace.

Assessors on the M&A Marketplace Platform

Metaverse also allows the creation of Digital Identities (Avatars) and Oracle intermediaries, which will be called Assessors on the LEXIT platform. These are designed to give an additional cover as far as trust, security, and accessibility go. Avatars are autonomous identities that users can employ to track their transactions and build a solid reputation through the interaction with other Avatars in the system. Oracles are Avatars that act as established intermediaries, working to provide additional verification, expertise, and services to transactions throughout the marketplace.

The use of Avatars and Oracles will be able to give LEXIT a solid reputation as a credible and trustworthy digital marketplace. Trading power on the marketplace lies in the hands of individuals, and they will influence the marketplace despite their financial position or existing assets. Transactions are finalised through Metaverse’s built-in smart cotracts, ensuring that fraudulent transactions are not concluded. Users can be assured that they will not lose any of their assets to fraudsters.

Also read: Why M&A due diligence is so important: A cautionary tale

When reached for comment , LEXIT CEO Amir Kaltak notes, “LEXIT and Metaverse both share a fundamental appreciation for blockchain technology. This partnership will allow our development teams to share invaluable insights which will help us to explore the possibilities of blockchain application in the M&A and Digital Identity industries.”

Metaverse CEO Eric Gu also chimed in, expressing, “LEXIT and Metaverse are alike in their drive to provide users with accessibility. We want our users to hold the power of blockchain, and LEXIT wants to increase the number of people that can benefit from M&A. We both share the ideals of the democratization of blockchain services to allow this innovative technology to break down barriers and provide an efficient solution for businesses and individuals alike.”

The M&A marketplace will be completely transformed and will see the full benefits of a blockchain based system that will efficiently and securely process M&A transactions. As blockchain technology changes the landscape of the M&A marketplace, we will see a further opening up of once exclusive services to the masses who need these services, thus bringing value to the greater economy.


e27 publishes relevant guest contributions from the community. Share your honest opinions and expert knowledge by submitting your content here.

Photo Credit: JESHOOTS/Unsplash

The post Can a blockchain-powered M&A marketplace make such exits more fair to small players? appeared first on e27.