Actual problems
Current realities are such that with the merger and acquisition processes long litigation, in the form of discussion of many endless factors, involving their specialists or even lawyers comes. The Lexit platform will help to reduce these processes four times, and will also create an instrument for trade of intellectual property and other tangible and intangible assets.
Asset valuation process
While any buyer is looking for the lowest price, any seller tries to give the price as high as possible. Such intentions spoil the deal even before it begins. For the correct valuation of a product or asset, a third party is involved. This party in no way relates to the seller or the buyer. The Lexit platform will provide the whole service for valuation with the help of separate independent validators. Another aspect of this problem is the complexity of evaluating innovative projects. So once Yahoo misjudged Google and twice refused to buy them, first for one million dollars, and later for five billion. Now Google costs is about 83 billion dollars.Therefore, such projects and intellectual property assets should be comprehensively valuated by special people.
High transaction cost
For small businesses and startups, especially if the acquisition process is due to the losses of this business, large expenses are very difficult. The cost of such transactions is largely expressed in advisory commissions of banks, through which mergers and acquisitions are conducted. Only in 2017, such commision costs, if you take the top 5 banks of the US, is 10.2 billion dollars.
Costs for M&A specialists
As already stated earlier, such processes are very complex from the legal point of view, and from the point of view of companies that give their groundwork.Therefore, such processes often require a lot of lawyers, accountants and other M&A professionals. The realities are that small companies agree to be acquisited only in order not to incur legal claims that could potentially bankrupt the firm and leave projects unfinished.
Intellectual property problems
Loss of unused intellectual property
Due to the lack of fluidity in the intellectual property market, many projects and groundworks remain unused. Many developers, instead of looking for investors and buyers, are focusing more on research and product development. And if such a product doesn’t succeed, then without financing , it will sink into oblivion. And now there is no way for large companies to easily find and offer a merger or acquisition of such projects. The Lexit platform will solve this problem by creating a trading platform where it will be possible to buy not only intellectual property, but even the whole company.
Undervaluation of intellectual property
Just like with startups and companies, intellectual property needs professional valuation. Especially, this valuation is important for the justification of the price of intellectual property, therefore technical, economic and financial experts are needed to assess the profitability of the product of intellectual property.
Basics of platform work
Externally, the platform will look like a website representing a flexible and convenient web service, through which the entire GUI or interface will be provided. With the help of this interface, buyers will be able to view the offer market to find products or companies suitable for their parameters, and suppliers or creators will be able to place their tangible and intangible assets on the market and see a list of purchase requests. To create such a functional, you need a database of intellectual property placed, a complex customizable search engine, complex databases that can handle complex requests. The task of this platform level is not only to create a visible and user-friendly interface, but also to ensure the proper level of security. The platform web layer will be responsible for the list of auctions and the beginning of transactions, that is, setting the necessary parameters and terms of the transaction. In a separate module called the Deal room, confidential documents will be stored, so the security of this module will be provided by reliable and stable information security systems. Further, with the help of smart contracts, the network will record all bets and product valuations from the auction. And ending deals and tracking the negotiation process will record another smart contract.
Assessors
Assessors- people who value products and companies to place assets at an auction. Each supplier can choose up to ten assessors for his asset, while assessors can also apply for projects of interest to them. The assessors can’t, and they are not required, determine the cost, value, quality of projects, their task is only to provide their own personal views. Payment for assessors is made in a standardized form, that is, all the same fixed value of LXT tokens is determined, regardless of length, quality and other characteristics of the review of the assessor. However, in contrast to the fact that an improved evaluation will also be paid, the fact is that the best assessors are invited to the Deal room. And assessors working within the Deal room are entitled to an additional fee. Also, after a successful deal, buyer and seller assess the work of the assessor to form his rating. Thus, all processes of the platform are linked into a single ecosystem of sellers, buyers and assessors.
Additional security
The assessors are a kind of protection for the platform and its participants, but they aren’t qualified in law and aren’t always able to identify fraudulent schemes. Therefore, on the platform Lexit will also be present antifraud team. People who are members of this team will be employees of Lexit and will be subject to the process of verification before taking office.
Lexit token
Lexit token or LXT is the main platform token, through which all deposit investment, rapid establishment of deals and transactions are made. LXT are also used in smart contracts to provide a secure, non-trustworthy environment capable of processing a large flow of transactions. LXT will be taken as a commission each time the seller downloads his goods to the auction list. Also, tokens will allow to purchase premium platform services, such as an extended auction list, and tokens allow to purchase access to the executive room, where you can see new offers before they are publicly available.
Distribution of tokens
Let’s consider how the Lexit team plans to distribute tokens to provide rewards to participants and assessors and to adjust the economy of the platform. Most tokens, namely 50% of the total number, will carry out transactions and all associated processes on the market. 29.5% will be frozen in the company’s reserve. 10% of the tokens will be distributed among the members of the project development team and the last 4% will be rewarded to the partners of the project.
Conclusion
The revolutionary platform called Lexit will change the model of acquiring tangible and intangible assets for the better. In such a blockchain platform, users will have all the tools for product evaluation with the help of a comprehensive evaluation by participants, that is, assessors, and persons outside the platform. Users will also have tools for safe and quick product purchases, using blockchain technology. Also, the platform will solve current problems of mergers and acquisitions processes of companies by reducing the terms of these processes four times and offering structuring tools.