During the past two weeks I have attended two M&A and VC events and have the following to report about prospects for buy-side and sell-side activity, especially as regards small business.
1) While the prospects for selling a company to a large business worsened during the 2008-09 economic collapse, the number of deals and the outflow of cash remained fairly steady during Q2 and Q3 2009. This is good news and ought to encourage buyers that the worst is behind us and the time to move is now, when bargains can still be found.
2) For Venture Capital investments, the worst is definitely behind us. Activity bottomed out during Q1 2009, at 50% of the peak during Q1 2008, and immediately grew during Q2 and Q3 last year. Although stil below the 2008 peak this trend reveals confidence in the investor community in prospective companies and the markets they serve.
3) California (DefCon's backyard) provides the best hunting ground for new investment opportunities. During Q3 2009, depending on how you slice things, California startups received 54% of the VC dollars and 41% of the VC deals.
DefCon is working both financing and M&A deals with clients and expects to have some press releases regarding this activity fairly soon. Stay posted.
Thursday, January 28, 2010
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment