Mergers and acquisitions (M&A) were the region only limited to specialized investment institutions and companies. However, individuals will be able to participate in M&A thanks to cryptocurrencies using blockchain technology.
GBC Korea announced on Feb. 25 that it would start a blockchain platform service that allows individuals to participate in M&A next month at the earliest. It has developed the new M&A platform in order to expand the scope for M&A from institutional investors to retail investors.
Information was very limited and transaction was closed in the existing M&A market. In particular, it is the area that requires expertise, such as business due diligence and accounting analysis, so it was difficult for individual investors to access the realm. Accordingly, buyers and sellers had to pay high costs, including fees, to intermediaries, such as securities firms and law firms, in the process of transaction.
An official of GBC Korea said, “When assets of the companies which are subject to M&A are digitalized through blockchain technologies, investors can make an investment and transaction quickly and transparently without the intervention of intermediaries through the new platform based on the blockchain technology.”
Using Nexon Co., which has recently been the talk of the town in the information technology (IT) industry, for an example, the largest shareholder of Nexon can simply register the firm on the new M&A platform without selecting the manager of the sale. When it is registered, investors around the world can purchase a small or large amount of Nexon shares through cryptocurrency UCX. UCX is a blockchain technology-based crypto token developed and issued by the M&A platform so that retail investors can also take part in global M&A deals.
When funding for a specific M&A deal begins on the platform, individual investors can buy UCX over a specific period and choose one of numerous M&A deals to participate in as well. In the process, AI technology is being used to help them choose an M&A deal. With the AI technology, retail investors can predict the size of investment and investment profitability and pick a project according to their needs.
They also can exit the project anytime as the invested cryptocurrencies can be exchanged to cryptocurrencies for other projects and UCX after a period of time. GBC Korea has applied for a patent on the M&A platform technology.