more-arw search

Mergers and Acquisitions 2010 - Mergers Acquisitions

Tech companies are main players in the M&A market.

The number of venture-backed companies to go public in the first six months of 2011 was close to that of the same period in 2010 - with 25 companies doing so this year - while the number of mergers and acquisitions was down slightly, going from 236 in 2010's first half to 215 in 2011, according to Dow Jones VentureSource.

Keeping business valuations reasonable will help sustain the strong pace of IPOs, Ben Howe, chief executive of America's Growth Capital, a technology investment bank, told the source.

According to Mark Heesen, the National Venture Capital Association president, those in the finance community who are watching the health of venture-backed exit markets should avoid being distracted by recent high-profile public offerings and take a broader overview of the entire market. Doing so reveals that the IPO market is "gradually improving," he said.

The market for tech IPOs is getting more competitive, which has shifted investors' concentration from M&As to IPOs. Investments in tech companies may be a smart move, since NVCA identified them as taking the lead in both venture-backed IPOs and M&As.