If the current economic situation has taught me anything it is that classic economic concepts of supply/demand really do work.  It also has taught me that good Midwest conservatism is not always the same as prudent investment.

 

On the front page of today’s Wall Street Journal is an article entitled “Cash-Rich Oracle Scoops Up Bargains in Recession Spree”.  The article describes how Oracle has closed ten acquisitions in the past year, ranging from a maker of insurance-policy-writing tools to a designer of “plan-o-gram” software used by stores to maximize their use of shelf space.  This all in light of a market where we saw a decrease in U.S. private equity investments in technology companies from nearly $120B in 2007 to approximately $30B in 2008.

 

Key quote from the article… “It’s a buyer’s market”.

 

In the final quarter of 2008 my business law firm / technology law firm, Alerding Castor, handled eight acquisition deals - seven of which were for buyers; two of which were in connection with private equity firms; six of which were for Indiana technology and/or SaaS businesses.  The current economic climate has created an environment for buyers and sellers.  As sellers become despirate and value liquidity over long-term ROI, buyers are stepping up and finding deals. 

 

 

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Private Equity in 2009 – Don’t Give Up
Private Equity VII – More on Angel Investors

Private Equity VI - Raising Angel Capital
Private Equity V - Raising Capital and Not Telling Lies
Private Equity IV - Angel Investors Get Picky
Private Equity III
Private Equity II
Private Equity I