All advisory services relating to mergers and acquisitions (M&As) at MergerTech can now be paid for using the cryptocurrency bitcoin following a recent announcement by the companys.
MergerTech is a company that is based in California and provides sub-$100 million revenue companies in the technology industry with exit strategy support . A recent sale to BBVA, a megabank, was brokered by MergerTech when it sold the bank the mobile banking startup company Simple at a price of $117 million.
The reasons for the company entering the bitcoin market were so that it could find a new type of client looking for a deal on M&A whilst at the same time learning more about the bitcoin marketplace itself, according to Nitin Khanna, the CEO and founder of MergerTech.
An aggressive move into the field of bitcoin is an essential strategy right now said Khanna advising that they needed to be ready and able to take on the smaller bitcoin businesses out there within the next 12 months so that when the huge businesses like Microsoft and Google started showing an interest in the bitcoin innovation companies they will be able to help.
Comparing bitcoin businesses with cloud computing spaces and mobile payments Khanna also claimed that it could rival these two areas when it came to the M&A market as the bitcoin market is currently hugely innovative and is receiving plenty of funding.
It has been indicated that a bitcoin account will be set up with whichever service the customer uses in order for funds to be received as MergerTech will not be using merchant processor and will only take bitcoin payments privately.
With commitment fees for startup sales ranging from $25,000 to $50,000 and success fees climbing to anywhere between $1 million all the way to $5 million, both of these fees can be paid for with bitcoins according to the company.
Going forward Khanna advised that he had a great interest in making enterprise payments in bitcoins and that it was only a short-term goal to receive bitcoin payments. Building a bitcoin solution for big businesses rather than SMEs, where each transaction could be worth many thousands of dollars, would be the best place for the bitcoin community to focus now said Khanna, who has his own personal bitcoin account.
Khanna used MergerTech as an example saying that when it came to converting the huge amount of bitcoins the company received whilst at the same time making payments to vendors, banking partners and staff there were no solutions at an enterprise level available. He added that it would be unlikely that enterprise innovation would be able to keep pace with the smaller payments made by consumers if larger payments in bitcoin were not being accepted.
With his experience at Saber Corp, which is a software company that provides help to governments with a wide range of tasks including the registration of voters, management of elections and the management of their motor vehicles, where he was the CEO and chairman, Khanna has also expressed an interest in applications that use advanced block chain.