The GP Blog
GPV 3Q 2011 Update
Q3 started off looking good, then the debt ceiling crisis, S&P downgrade, and subsequent stock market roller coaster ride made things real interesting. IPOs, secondaries, and many M&A deals were put on hold or canceled as all parties hesitated during that period of uncertainty. As the mood has calmed, the sky hasn't fallen and corporate earnings are coming in good (see Google), the market appears to have stabilized.
Some large deals occured in the tech sector in Q3, such as Google-Motorola Mobility, HP-Autonomy, and Broadcom-Net Logic Microsystems. Teradyne also bought LitePoint for $580 million and Electronic Arts acquired Popgames for $750 million. Most deals in the quarter occured before the debt ceiling crisis, although it seems like things were back "on track" by mid-September. IPOs came to a complete stand-still, with only 5 VC-backed IPOs in Q3.
Q4 stands to be much better as long as no shocks occur in the market or economy. Corporations have a large cache of cash and are eager to do deals. Deals that were put on hold in Q3 are starting to move forward. Baby Boomers who own businesses are getting tired of waiting for the perfect market, and in general those businesses that are doing well are getting a lot of attention from buyers.
posted at October 28 2011 15:51 by webadmin
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