
News:
Beanstalk Management Energises Gennext’s Search for Photovoltaic Solar Park
Investment Partners
Leading Business Broker Beanstalk Management Secures Strategic Investment for
PDF Software Developer Iceni Technology Limited.
| "The extensive and well thought through prospect list that
Beanstalk put together generated a significant amount of interest in
the business, and the choices they gave us stretched our
thinking.They guided us well through the selection process and
ultimately helped us find the best fit for the business" Iceni Technology February 2009 |
Mergers and acquisitiona activity increases
Venture-backed exits, which primarily consist of mergers and
acquisitions, were down by approximately fifty per cent during the third
quarter. However, there is evidence to suggest that mergers and
acquisitions activity is actually on the increase.
TechCrunch
keeps data on all announced acquisitions. Based on the figures they
have, during the third quarter $45.1 billion worth of acquisitions were
announced. This is a three-fold increase from the $15.4 billion in the
three months, which went before and quadruple the low of $7.6 billion
from the fourth quarter, which was an increase of nearly 25 per cent
from the year before.
Larger acquisitions accounted for a large
chunk of these figures. Many of these included companies trading on the
stock market, for example the purchase of Perot Systems by Dell for $3.9
billion, Affiliated Computer Services bought by Xerox for $5.75 billion
and Adobe acquiring Omniture for $1.8 billion. Biotech and
pharmaceutical deals were also prevalent, such as Dainippon Sumitomo
acquiring Sepracor for $2.6 billion and the merger of Abbott Labs with
Solvay Pharmaceuticals for a hefty $6.6 billion.
The quantity of
mergers and acquisitions has stagnated around the 210,000 over the past
four years. However, the value of these acquisitions has substantially
increased. The average of each deal has actually increased by 85 per
cent from the same period last year. During the third quarter the
average value of each merger and acquisition deal was $349 million.
Buyers appear to be more cautious about making deals but once they
decide to continue, it would appear that they are willing to spend
larger quantities of money. This is particularly the case when dealing
with companies who are established with a proven track record. This
accounts for the increased spend on publicly traded companies.