LEXIT is a tech company aiming to disrupt the mergers and acquisitions market and revolutionize the way companies and their intellectual property are bought, sold, and licensed.
It plans to achieve this with a platform approach utilizing blockchain technologies to create a trustworthy ecosystem that brings buyers, sellers, and experts to the same place.
LEXIT is the first marketplace for IP and entire companies. Our platform will allow entrepreneurs to trade IP, copyrights and technology, and even sell whole startups.
The aim of LEXIT is to simplify the whole process so that deals can be made faster and at a lower cost, without sacrificing security.
Currently, buyers, sellers, and appraisers need to find each other manually. This is time consuming, costly, and narrows the options available to all participants meaning they may not always get the best deal.
Placing the M&A marketplace online seems a no-brainer, but issues of trust, security, and transparency have ensured the industry has changed little over the years.
Blockchain technologies are now providing ways around these obstacles and LEXIT is pioneering a solution that could unshackle the world of M&A.
The M&A process is long and costly even before a buyer is contacted.
Millions of businesses form and disband every year, but it is still difficult for buyers and sellers to find one another and to negotiate fairly.
The process relies on intermediaries who help businesses to establish trust. But, as more parties get involved with negotiations, disputes become increasingly likely. These disputes slow progress and the longer the negotiations continue, the more expensive the process becomes.
LEXIT wants to simplify the process by providing an online M&A marketplace where companies and their IP can be sold or rented as easily as selling a product on eBay.
LEXIT’s platform brings the marketplace online so that sellers, buyers, and assessors can find each other without the need for exhaustive manual research. The goal is to simplify the trade of corporate assets so that deals can be made faster and businesses can save time and money.
Usually, the early stages of the M&A process would be long, costly, and involve an army of corporate lawyers, investment bankers, financial advisors, and appraisers before the first potential buyer is even contacted. When negotiations take so long the only parties who benefit are the lawyers. The market is open for disruption and LEXIT is the company trying to make it happen.
How can LEXIT disrupt the M&A marketplace?
The availability of trustworthy experts and a lack of transparency in the industry makes it difficult to estimate the true value of assets.
This difficulty makes the process costly and keeps potential sellers from entering the market. As a result, large amounts of IP remain unused especially among SMEs and universities that often lack the legal expertise and resources to engage in the market.
LEXIT’s platform is designed to provide SMEs with experts who can help them discover the value of their research and guide them step-by-step through the process of selling.
So, LEXIT can tap into an untouched market and bring increased value to the platform.
LXT
The LEXIT ecosystem will be driven by its native utility token (LXT) which will be used to pay experts for doing exceptionally good work, reward platform users for applying accurate and helpful tags, and to pay commission to LEXIT upon successful completion of a transaction.
LEXIT believes that launching a native token is essential to avoid fluctuations in price and the technology of established cryptocurrencies. The issuance of a token will also allow the utilization of smart contracts that will ensure trust between participants.
Rewarding experts with LXT for exceptional work will act as a quantitative rating method. A monetized rating system will discourage the spamming of five star or 100% ratings, making them trustworthy and easier for platform users to find the best experts.
A platform needs value creating participants.
To be successful the platform needs to be heavily populated with value-creating buyers, sellers, and experts. If any group of participants is underpopulated then the ability and incentive of other agents to generate value is reduced.
For example, if there are not enough buyers, sellers have no incentive to list their IP and if sellers do not list their IP then there is less demand for assessment by experts.
To avoid this situation, LEXIT introduces a network of Global Partners (GPs). These GPs are screened and contracted by LEXIT and are highly connected players in IT/High-Tech industries.
Their networks and industry knowledge will allow them to onboard potential buyers, sellers and experts onto the LEXIT platform, creating the value the platform needs to encourage a thriving marketplace.
The future of LEXIT
LEXIT seeks to position itself as the world’s leading venue for the trade of corporate assets across all businesses of all scales.
Encouraging the participation of SMEs has the potential to grow the market. And, as the volume of transactions made on the LEXIT platform increases, it will be ready to meet the diverse needs of a growing user base.