Yahoo!/Reuters has a story about why there will be many more tech acquisitions and as I have mentioned before the abundance of money in the financial markets and Sox compliance costs are making it an ideal time for smaller companies to go private -- or let a larger company deal with compliance issues. How is this for optimism?
Jim Davidson, a founding member of private equity firm Silver Lake Partners, told the Reuters Venture Capital Summit in San Francisco last week that he saw "years and years of good deals available," in the technology sector.
My take on all this is M&A activity is fantastic because the exit strategy many companies now rely on is getting acquired. Sox has made it more difficult to go public and Vonage has reinforced the fact your company should generate profit before you go public. So without the M&A option what would these smaller companies use as an exit strategy for their investors?
Jim Davidson, a founding member of private equity firm Silver Lake Partners, told the Reuters Venture Capital Summit in San Francisco last week that he saw "years and years of good deals available," in the technology sector.
My take on all this is M&A activity is fantastic because the exit strategy many companies now rely on is getting acquired. Sox has made it more difficult to go public and Vonage has reinforced the fact your company should generate profit before you go public. So without the M&A option what would these smaller companies use as an exit strategy for their investors?
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