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M&A e-Marketplace

IP.com Disclosure Number: IPCOM000015371D
Original Publication Date: 2002-Mar-01
Included in the Prior Art Database: 2003-Jun-20
Document File: 2 page(s) / 63K

Publishing Venue

IBM

Abstract

Title : M&A e-Marketplace 1. Environmental analysis Nowadays, many corporations from big ones to small ventures pursue M&A as strategic options for the respective purposes of survival, exponential growth, synergy generation and business portfolio restructuring. It is well known that M&A activities will significantly grow for the next decades by double digit growth rate. Yet there are several barriers for the M&A markets to grow. One is the absence of proper information. Many corporations have been suffering from finding suitable target companies with reasonable cost they can bear. It is because the information about companies who want to buy or sell are not easily collected and gathered in the market. Those information is scattered here and there such as a small group of investment bankings, stock-trading companies, consulting firms or M&A boutiques. Hence, many companies which are trying to make M&A deals are difficult to begin the M&A activities. The other is the argument about the fair price between a seller and a buyer. That's not because buyer would like to buy at the lower price, which seller cannot accept, but because both buyer and seller do not trust the price presented by brokers. Of course, the determination of price is the long process of negotiation between buyer and seller but the guidelines of objective price range is essentially necessary for the efficient progress of long and difficult M&A negotiation. 2. Framework of M&A e-Marketplace

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M&A e-Marketplace

Title : M&A e-Marketplace

1. Environmental analysis

Nowadays, many corporations from big ones to small ventures pursue M&A as strategic options for the respective purposes of survival, exponential growth, synergy generation and business portfolio restructuring. It is well known that M&A activities will significantly grow for the next decades by double digit growth rate. Yet there are several barriers for the M&A markets to grow. One is the absence of proper information. Many corporations have been suffering from finding suitable target companies with reasonable cost they can bear. It is because the information about companies who want to buy or sell are not easily collected and gathered in the market. Those information is scattered here and there such as a small group of investment bankings, stock-trading companies, consulting firms or M&A boutiques. Hence, many companies which are trying to make M&A deals are difficult to begin the M&A activities. The other is the argument about the fair price between a seller and a buyer. That's not because buyer would like to buy at the lower price, which seller cannot accept, but because both buyer and seller do not trust the price presented by brokers. Of course, the determination of price is the long process of negotiation between buyer and seller but the guidelines of objective price range is essentially necessary for the efficient progress of long and difficult M&A negotiation.


2. Framework of M&A e-Marketplace

(1) Business Model

M&A e-Marketplace will provide the appropriate information to the companies which try to buy or sell the company or the components of companies. And also the objective valuation of the companies can be provided. It is calculated almost automatically by the reliable financial method such as DCF (discounted cash flow model), and comparative analysis, which is explained and presented as a form of brief report on the web. These things can be supplied on the web, which is accessible only to the membership. It can be possible that the sellers would not like to disclose the names or other critical confidential part, then it can be renamed or hidden to the members before further deal process. If M&A e-Marketplace can acquire critical mass of clients and accumulate qualitative information, then it will be tremendously helpful to the companies, which want M&A. Hence, it can collect money from the participants who search these information, even though it will be served free of charge at the beginning stage.

And M&A e-Marketplace can support the long process of negotiation between buyers and sellers on the web. By allocating the dealing room to each negotiation parties, M&A e-Marketplace can facilitate the efficient communication between parties and also can advise the issues and problems to be resolved. This advisory services can provided in...