Here are the final 2 on-demand economy trend predictions merger and acquisition lawyers should look out for this year if they wish to take advantage of opportunities brought about by the consolidation of an increasingly swamped on-demand economy.
International power-player firms are playing it smart. They’re setting their sights on start-ups to try and secure faster and easier access to local markets and knowledge bases which will help speed-up their growth.
“Global players… acquire local businesses in order to gain market share, acquire a local user base and to tap into valuable local market knowledge, rather than trying to grow a local business from scratch,” Mr Sacks stated.
Many companies already operating in the on-demand economy recognise the business environment is beginning to change. Lance Sacks predicts that those companies who don’t have the means to invest in innovation in-house will instead look to “bolt-on” services, or products produced by smaller and more flexible firms.
“Those established companies that are not so forthcoming to invest in research and innovation will eventually be forced to acquire disruptive businesses to help them stay relevant,” Mr Sacks elaborated.
Transactional lawyers need to ensure they are ready to tackle the changes if the trends pan out over 2016. So what do these legal experts need to do to prepare themselves? (bullet points)
Upskill – understand the technology being adopted by these on-demand economy companies and get their head around how this impacts economic drivers and transaction risks.
Be prepared – ready to handle the regulatory aftermath caused by this disruptive business model.
Firms will need to consider creative strategies to help them get around any regulatory hurdles.
“Law usually lags behind developments in science and technology. In many instances innovative products and services created by disruptors might not fit squarely within existing regulations. Creative strategies will need to be used to help companies traverse these issues,” said Mr Sacks.