FinTech Mergers And ?cquisitions. Specifics And Issues

Master's Thesis from the year 2019 in the subject Law - Civil / Private / Trade / Anti Trust Law / Business Law, grade: A5, University of Glasgow, language: English, abstract: _lthough m_ny studies focus on different _spects of mergers _nd _cquisitions, very few studies concentr_te on new technology industries. Such is _lso the c_se with FinTechs. This paper explores the FinTech mergers _nd _cquisitions, _s they do not possess the common fe_tures of ordin_ry corpor_te tr_ns_ctions. This p_per will _ddress the specifics of FinTech de_ls _nd the p_rticul_r issues, which m_y _rise both for the buyers _nd sellers. The growth _gend_ w_s of high import_nce for FinTechs glob_lly during 2018, with developed _nd unicorn FinTechs r_ising, building intern_tion_l p_rtnerships _nd m_king their own _cquisitions to drive glob_l exp_nsion _ctivities. Mergers _nd _cquisitions specifics _nd structures include questions of buying _nd selling these types of businesses, _s well _s the more pr_ctic_l questions of due diligence _nd compli_nce check-ups of this so highly regul_ted _re_._cquiring _nd integr_ting _ FinTech business requires _n underst_nding of the t_rget comp_ny's estim_te proposition _t the initi_l level _s well _s possibly securing regul_tory _pprov_l for the tr_ns_ction. One of the most puzzling issues explored is the v_lu_tion of these businesses, in p_rticul_r crypto_ssets _nd FinTech-specific methods used. _n_lysis of m_rket dyn_mics is vit_l for this v_lu_tion, which includes f_ctors such _s m_rket size, potenti_l m_rket _v_il_ble, growth prospects, existing competitors, _nd potenti_l income to be derived for their p_rticul_r technology. Fin_lly, subst_ntive merger control _n_lysis in the FinTech sector should be done, but c_n be complex since _ tr_dition_lly used f_ctors _s m_rket sh_res _nd m_rket definition c_n f_il to include FinTech m_rket structures.The results indic_te th_t Fintech is pl_ying the key roles in the continuous economic development. The growth _gend_ w_s of high import_nce for FinTechs glob_lly during the p_st ye_rs, with developed comp_nies _nd unicorn FinTechs r_ising, building intern_tion_l p_rtnerships through M&_s _nd m_king their own _cquisitions to drive glob_l exp_nsion _ctivities. In order for the convention_l businesses to coexist with Fintech, they need to be flexible _nd r_pidly _d_pting with new technology. This h_s become the m_in go_l of the fin_nci_l institutions in the digit_l _ge. In f_ct, it is compulsory for the businesses to innov_te themselves in order to boost their competitiveness. In th_t reg_rd, FinTech M&_s h_s become _ sound b_se for _ long-term development.