VC Offramp Backup

An insightful and numbers-full piece in, of all places, Pensions and Investments, discusses the traffic jam developing in Venture Capital. As with any other backup, there is an excess at the beginning and less near than the end: as total capital invested continues to rise (more dollars but a smaller number of deals), however there are fewer exits, as market reluctance remains intact…

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M&A Appetite and Indigestion

We facilitate acquisitions. So it's good for us if M&A activity pays off for everyone involved. But too often it does not. The Economist has an excellent post on the difficulty with many M&A deals, focusing on a new study on acquisitions by public companies that, pretty simply,   concludes that the shares of acquirers underperform their less acquisitive peers. Profit margins also…

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The Acquisition Option

With venture funding down and the market for IPOs still anemic -- just eight venture-backed companies so far this year, compared to an annual average of 64 from 2003-2007 -- emerging companies hoping for an exit are increasingly on the lookout for suitors.  Several trends indicate a potential upswing in M&A activity early in 2010. First, as Montgomery & Co points…

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