Merger and acquisition lawyers could stand to benefit from opportunities brought about by the consolidation of an increasingly cluttered on-demand economy if 3 predictions from Clifford Chance Lawyers come to fruition throughout 2016.
The term ‘on-demand economy’, refers to the economic activity generated by technology firms to fulfil the labour and/or service demands of customers, matching clients with independent contractors in real-time.
The on-demand economy includes businesses which offer:
Online take-away ordering
Online betting
Grocery delivery
Cleaning services
Crowd-sourced couriers
Here’s 3 on-demand economy trend predictions transactional lawyers should look out for as we head further into 2016 courtesy of Sydney, Australia situated, Clifford Chance law firm partner Lance Sacks and senior associate Jerrem Ng.
Bigger, stronger and smarter competitors who offer similar services, or labour will be the real winners as they’ll be sought after by new entrants looking to consolidate. Firms struggling to compete will be eyeing these better positioned companies as well, wishing to survive through consolidation as they come to the realisation they cannot offer a unique value proposition in such an over-crowded space.
“Businesses with vastly superior services have a greater chance of being sustainable. However, those which provide just marginal improvements to what is in the market will end up having to raise capital, or consolidate with competitors offering similar services,” explained Jerrem Ng.
Check out 2016 On-Demand Economy Trends for Transactional Lawyers Part 2