The global tech industry is steadily decentralizing, moving away from Silicon Valley and creating new hubs in places such as Tallinn, Tel Aviv, and Shanghai. Due to the adoption of cloud and token-based solutions, startups and digital businesses can now be launched and run from anywhere in the world. Unfortunately, the way tech companies handle Mergers and Acquisitions deals still works as it did thirty years ago, with the average operation taking two years to be completed.
There are several reasons behind this lack of efficiency in tech M&A deals: acquiring intellectual property is time-consuming, completing appraisal and auditing processes require too much money upfront, and small companies often lack the resources to even enter the digital business marketplace. However, blockchain technology can help to sort out all these challenges.
Recently LEXIT, a digital M&A marketplace, and Metaverse, a public blockchain, announced their partnership through which they hope to revamp the Mergers and Acquisitions industry. Buyers and sellers will now have access to a safe business platform where they can trade tech assets faster. While LEXIT facilitates the M&A process, Metaverse provides tools that allow LEXIT users to create self-sovereign digital identities, tokenize their assets, and offer them to potential buyers.
LEXIT CEO Amir Kaltak states: “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.”
Small and large businesses will benefit from this partnership since they will be able to exit their unused intellectual property or patents in a streamlined process. All company transactions will be recorded and users can build the reputation of their digital identity by interacting with users from both LEXIT and Metaverse.
LEXIT users will also have access to specialists that will help in the appraisal of their intellectual property. These experts, called Assessors by LEXIT and Oracles by Metaverse, will facilitate the due diligence of transactions so the parties involved can rest assured that they are paying or receiving a fair price for the transacting asset.
By creating digital deal rooms and tokenizing assets, LEXIT and Metaverse aim to reduce the upfront operational costs and make Mergers and Acquisitions more profitable for everyone involved. The ultimate benefit of this partnership would be an increase in number and overall value of tech M&A deals, making this industry as decentralized as the startup ecosystem is nowadays.
Metaverse CEO Eric Gu comments: “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.”
LEXIT is the first marketplace where entrepreneurs can trade intellectual property, copyrights and technology from discontinued projects, and even sell whole startups. Blockchain-based tokenization models and the disintermediation of appraisement and matchmaking services allow LEXIT to make Mergers & Acquisitions as easy as selling a car or real-estate.
Metaverse is an open-source public blockchain that provides digital assets, digital identities and Oracles as a foundational infrastructure for social and enterprise needs. Through Blockchain-as-a-Service (BaaS), Metaverse makes convenient, secure digital financial services accessible to all applications at virtually no cost.