January 9 - Gigaom - Bankers’ optimism about technology M&A is starting to wane, according to a newly issued report from tech research shop The 451 Group. The firm’s analysis calls for “slowing expansion” in 2008, due primarily to the credit crunch, which is having a dampening effect on the number of leveraged buyouts sought by private equity firms.
While two-thirds of bankers expect an expansion in their deal flow in 2008, a mere 13 percent (or four times as many as last year) are forecasting a decline in their business. And although corporate buyers still plan on picking up customers and new technology through acquisitions, with 45 percent expecting to increase their M&A activity, prices are likely to drop. For second-tier and me-too startups and their venture investors, that means the end of the Web 2.0 gravy train could be fast approaching. Read More.
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