Mergers & Acquisitions: Blockchain

International Journal of Research and Scientific Innovation (IJRSI) | Volume VII, Issue IX, September 2020 | ISSN 2321–2705

Mergers & Acquisitions: Blockchain

Julio Rionaldo A.
Information Communications Technology and Intellectual Property Law Department, Universitas Padjadjaran, Jatinangor, Indonesia 45363

Abstract: The Mergers & Acquisitions process are characterized by the fact that companies rely so much on attorneys, external deal advisors, auditors, tax consultants and other sorts of professional intermediaries. This results in both, high costs and considerable time expenditure. The lengthy and cost-intensive process makes it particularly difficult for enterprises to profit from any Mergers & Acquisitions transactions. In However, with the advent of Cryptocurrencies, Initial Coin Offerings, and Blockchain implementation, Blockchain and Machine-Learning as technology can be used across the whole bandwidth of the Mergers & Acquisition process, from letters of intent, asset to equity sales, through all stages of the due diligence into post-transactions integration. In this article, the researcher will explore and further elaborate on the comprehensive Mergers & Acquisitions process within the Blockchain.

Keywords: Blockchain, Due Diligence, Mergers & Acquisitions, Smart Contracts, Start-ups.

I. INTRODUCTION

As new technologies emerge, and innovation keep pushing the boundaries of mankind even forward, the Mergers & Acquisitions (hereinafter M&A) process which pertains to business accumulation and economic growth becomes cost-effective and easier to pull off than the conventional methods. According to TNC IT Group (TNC IT, 2019), blockchain-focused M&A activities are projected to grow to over 300% in the upcoming years.
In 2019, 79% of companies expect a further increase in the average number and volume of M&A transactions (Freiland, et. al., 2019). Technology has prompted a tidal wave of disruptions affecting various sectors and M&A is among the good strategies for companies to stay one step ahead of the competition. The ongoing spike on M&A activities signals a greater possibility for blockchain integration and what was initially deemed as market consolidation could also become the next step in strengthening the key players within finance, tech, innovation, and more industries.
As we head into the third decade of blockchain, we witness that the technology is disrupting the way we do business. Since its humble beginnings in 1991, the technology is credited as a ledger of ‘a trusted solution for tasks requiring a shared, trusted, and tamper-proof database.’ Interestingly, commercial applications like trade finance, clinical record-keeping, provenance verification, taxation, voting, and cross-border payments are being managed efficiently through blockchain technology.

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