In an organised business environment, larger companies buying over smaller companies are expected. This is what Mergers and Acquisitions fosters.
Mergers and acquisitions affords larger companies who are most times only specialized in a field, the opportunity to branch into other fields of businesses by buying over of merging with smaller businesses that specializes in that desired field.
It is always difficult to start up such businesses from scratch, owning to the fact that these large companies were built on the foundation of a particular field, having only qualified personnel pertaining to that field alone and it would cost more resources and longer time to employ and acquire the right personnel to build from scratch, hence the buying over already established smaller businesses.
Case Scenario
If Microsoft has a desire, based on market survey to branch into automobile production and sales, although a giant in the business world, Microsoft does not possess sufficient and necessary information to venture into such a business, rather it would seek to merge or acquire a company like Chevrolet, who specializes in automobile sale and production, has the technological know-how, understands the automobile market, has proper documentation and accreditation and skilled background staffs.
The benefit of this is that, Microsoft can branch into a new business, without having to shift focus from its primary business and would not have to bother about the rigorous processes of registeration and accreditation of a new business.
However, it's not as easy as it sounds. Smaller businesses who are in need of a bail-out plan so as to keep in business, do not have link to connect with the bigger companies in order to foster Merging or Acquisition.
Nevertheless, even when they do get in talks of Merging and Acquisition, the rigorous processes of consulting legal advice, business advice and all the paperwork associated with such, takes almost forever to happen.
Most Mergers and acquisitions always end up in shambles owing to:
-Larger companies not wanting to take the risk of overpaying for a small business that may or may not yield returns
-Smaller businesses looking for a perfect price to part way with some or all authority and ownership of their business
-Seeking the right guidance to go the transaction and when the right consultant is found, the reliable and competent ones are most time too expensive for both parties to fund
However, with Lexitco Mergers and Acquisitions just took a new shape.
Lexitco solves these afore mentioned problems by introducing 2 innovations:
1. The Marketplace
2. The Dealroom
The Marketplace
The Marketplace would promote Merger and Acquisitions opportunities, Lexitco which is a free to join platform would allow sellers to auction their businesses, just like displaying goods at the Mall.
Buyers in turn would have the wide range of options to go through whatever business of their choice, as Lexitco affords them the opportunity to filter through whatever business opportunity and find whichever suits their desire.
It doesn't stop there, it also gives a platform for interaction of both buyers and sellers with Lexitco
experts on the blockchain for advice.
The DealRooms
These are virtual meeting points between buyers and sellers and specially agreed expert to agree, sign and hand documentation to one another.
It is secure and guarantees anonymity only between buyers and sellers. Fostering faster transactions, easier and more efficient Mergers and acquisitions.
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LEXITco