SINGAPORE / ACCESSWIRE / April 16, 2020 / For the financial world at large, cryptocurrencies hold practically no appeal, with speculative traders arguably the only party still vested in the performance of these digital assets. However, the underlying technology, blockchain, grabbed the attention of the financial services industry early on, causing tremendous excitement with its promise of higher transaction speeds, enhanced security, tamper-proof records, and cost reductions. "Due to its decentralized nature and use of cryptography, distributed ledger technology (DLT), as blockchain is also known, is widely regarded as capable of transforming the way financial transactions are executed. One segment of the market especially keen to see DLT become a mainstream phenomenon is M&A, where the technology can greatly simplify the process, shrink the timeframe for completion, ensure transparency, and slash costs through the removal of various intermediaries. In today's globalized environment, blockchain has the potential to facilitate cross-border M&A, creating opportunities and value worldwide," according to veteran business executive Bruno Michieli.
When it comes to deal-making, DLT is seen as particularly beneficial in the due diligence process, providing the parties to a transaction with a verified, immutable record of all data supplied by the buyer and seller, Bruno Michieli explains. Moreover, this part of M&A is typically associated with substantial costs, which often prevents smaller companies from making acquisitions, even if the potential transaction could bring advantages to all parties involved. In the broader M&A context, much hope is being pinned on smart contracts, which IBM defines as "lines of code that are stored on a blockchain and automatically execute when predetermined terms and conditions are met." In an article exploring the issue, PwC's James Marshall notes, "Because smart contracts can be programmed to automate transactions once certain obligations and conditions are met, they can also reduce counterparty risks and enable dealmakers to enter into agreements with a higher level of comfort, regardless of whether the parties have ever met or even trust one another."
Despite the excitement surrounding blockchain, it remains more of an aspirational goal than a widely adopted working solution for M&A, Bruno Michieli points out. This has partly to do with the lack of a unified regulatory stance, which, incidentally, is another area where the technology can deliver benefits. According to blockchain advocates, DLT could speed up regulatory approval - especially in the case of huge, complex deals - provided that the relevant oversight agencies utilize the technology to verify the data and standardize their decision-making process. "If we look at what blockchain really is - a shared infrastructure - we can see that its application in M&A or any other sphere of financial services could do a lot to increase data connectivity between the financial services industry and regulators," R. Jesse McWaters, head of financial innovation at the World Economic Forum, was cited as saying in an Intralinks post.
Bruno Michieli has been perfecting his business executive skills through more than two decades, proving his talent to identify and realize profitable investment opportunities and implement operational improvement initiatives. He has built an impressive track record in the technology and private equity industries, demonstrating his ability to deliver excellent outcomes in areas such as digital strategy, business planning, e-commerce, and entrepreneurship. Since 2006, Bruno Michieli has served as the CEO of Openlot Ventures (Asia) Pte Ltd - a private equity outfit focused on the leisure and gaming technology sector in Singapore and Hong Kong.
Bruno Michieli - Singapore - Professional Profile - LinkedIn: https://www.linkedin.com/in/bruno-michieli-76934b
Managment - Openlot Ventures: https://www.openlot.com/management.html
Bruno Michieli on the Advantages of Implementing Blockchain in Asset Management: https://finance.yahoo.com/news/bruno-michieli-advantages-implementing-blockchain-123800336.html
SOURCE: Bruno Michieli
View source version on accesswire.com: