Bypassing Wall Street

Comments Off on Bypassing Wall Street
Bypassing Wall Street

As the Digital Revolution continues to drive costs down relentlessly, it has disrupted business models and transformed one industry value chain after another.  One inescapable lesson from the carnage of the 20th century companies it has destroyed is that, just as in a tornado, the worst place to be when a revolution erupts is right in the middle. 

For example, the Internet has disintermediated bricks-and-mortar bookshops, music retailers, and video stores, allowing consumers to order or download content from Web sites like Amazon.  It has also enabled online services like Match.com and eHarmony to replace the human matchmakers who personally paired their clients with prospective romantic partners; for users of these digital services, the result is a lower-cost way to sort through a multitude of potentially compatible
people.

Over 5,100 companies engaged in buying, selling, lending to, or advising private companies using AxialMarket online. These companies include corporate buyers, lenders, investment firms, investment banks, and private companies. They use the network to source, manage, prepare for, and execute private M&A transactions.

Over 5,100 companies engaged in buying, selling, lending to, or advising private companies using AxialMarket online. These companies include corporate buyers, lenders, investment firms, investment banks, and private companies. They use the network to source, manage, prepare for, and execute private M&A transactions.

Now, the same disruption is threatening the traditional providers in the middle of another type of matchmaking: the linking of investors with
entrepreneurs who need capital.

The emergence of private market networks (PMNs) is driving this change.  PMNs offer platforms that allow investors and businesses to find each other after narrowing down a vast number of potential partners.

For example, a PMN called AxialMarket allows business owners to list their companies for sale to hundreds of institutional buyers...

To continue reading, become a paid subscriber for full access.
Already a Trends Magazine subscriber? Login for full access now.

Subscribe for as low as $195/year

  • Get 12 months of Trends that will impact your business and your life
  • Gain access to the entire Trends Research Library
  • Optional Trends monthly CDs in addition to your On-Line access
  • Receive our exclusive "Trends Investor Forecast 2015" as a free online gift
  • If you do not like what you see, you can cancel anytime and receive a 100% full refund