As previously noted, businesses are keen to shine their spotlights on the surge of disruptive technology, particularly with the opportunities it stands to introduce, the existing standards it proposes to displace, and the upside it promises for bottom lines. In recent years, the rise of disruptive technology has created a boom for some industries while potentially upending others. For legal practice, the result is the same in both instances – these technologies have created new challenges, particularly for corporate M&A lawyers.
A prominent example of a disruptive technology is cryptocurrency. The exponential growth of cryptocurrency and its related technologies has established a novel industry primed for continual expansion. The rise of this type of industry typically translates to amplified amounts of corporate law work and a rise in industry-wide transaction volume. Unfortunately, the same technologies creating such opportunities are not satisfied in stopping there.
Looking at the M&A practice generally, there are a number of innovative technologies hoping to completely uproot its foundation. Blockchain technology is now being leveraged by different ventures (and their respective platforms) in an attempt to simplify and streamline the M&A space. As another example, managed Cloud services and other Cloud-based technologies are being used in similarly innovative ways. Some of the approaches taken offer tailored solutions to assist in streamlining M&A transactions by improving the internal inventory and consolidation systems of businesses. These proactive technologies are designed to make necessary transitions involved in mergers and acquisitions simpler.
As a space that is notorious for its complication and costliness, corporate M&A legal work revolves around diligence, precision, and organization. It is no surprise that these types of technologies continue to gain the traction they have, especially ones offering desirable, fresh, simple, and cost-effective alternatives. Although the disruption may provide serious benefits and an influx in deal volume in the legal industry with its boom, its ripple effects on traditional corporate M&A practice should be an interesting trend to follow going forward.
The author would like to thank Daniel Lupinacci, summer student, for his assistance in preparing this legal update.
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