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.