Tweet

Modest Deals, Happy Deals

Written by: Brad Feld

Article Overview: I was talking to a friend yesterday about exits. In it, he suggested that the tech M&A market had shut down just like the tech IPO market had.

Modest Deals, Happy Deals

I was talking to a friend yesterday about exits. In it, he suggested that the tech M&A market had shut down just like the tech IPO market had.

This didn't square with my experience. I've seen plenty of modest M&A in the last two months (which I categorize as sub-$100m deals.) Two popped up today - AOL acquired Sphere for a reported $25m and someone is rumored (possibly Expedia) to have acquired Farecast for $75m.

While these are modest acquisitions, they are not distressed deals (e.g. company that is struggling gets bought for very little by other private company, usually for private company stock.) There are plenty of distressed deals happening - they are usually pretty easy to recognize.

While modest deals aren't the end game of a VC investor, they are definitely a key part of the diet. Everyone knows that "singles and doubles" don't turn a VC fund into a winner, but they are needed to fill in the holes. So - it's good to see a steady tempo of these modest deals continuing. Plus, it makes for good copy.

Read this post in Brad's blog.

Related Articles
  Business is an Art Form
  GrouponBot – Great Way To Spot National Trends on Groupon
  Salespeople Should be More Like Children
  Angels? Sure. VCs? Sure. But Not Both.
  When to say no to a deal. If you want grow say no!

Article Tags: acquisitions, aol, company stock, content engine, diet, end game, g company, holes, ipo market, last two months, private company, sphere, steady tempo, t square, techcrunch, vc fund, vc investor



Related Forum Posts
Re: How do you earn trust with an online business? - [quote="barrysarner":2ofdytmf]Hi Mary Happy holiday . . . You're so right. That's the only way to live your life if you want enduring success in your business AND personal life.[/quote:2ofdytmf] That's true, Barry.....And a Happy New Year to you! May it be even more prosperous and enjoyable than the last!
Re: Happy New Years! - [quote="Nana":2gg8n7v8]Happy Belated New Years! Out of curiosity what are your new years resolutions for your business? Did anyone manage to honour their past resolutions?[/quote:2gg8n7v8] Happy new year! I have a rule NOT to make resolutions...[i:2gg8n7v8] just my quirk![/i:2gg8n7v8] I've seen the disappointment too many times at failing to stick with the resolution. BUT - I will silently set some intentions for the year ahead and try to be mindful of achieving them... As I get older, I've gotten better at focusing on those goals too. As Martin has said - [i:2gg8n7v8]just focus on one thing at a time[/i:2gg8n7v8] - cross it off your list, then move on to the next...
Re: Happy Birthday Evan - Happy Birthday!!!
Re: Off to New York / Philly - Have fun! And Happy Birthday!
Re: Happy Thanksgiving! - Happy Thanksgiving to everyone!


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Small Business Internet Marketing

Igniting Your Unstoppable Business Destiny

How do I finance a franchise?

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.