With big banks tottering, VCs may find all their exits blocked - Valleywag Comments

With big banks tottering, VCs may find all their exits blocked

irrational exuberance — Thu, 20 Mar 2008 02:13:28 PDT

@old-and-in-the-way: @matto: because of the number of deals initiated by private equity firms...while tech companies may remain cash-rich and unaffected for now, poor liquidity DOES affect the PE guys' ability to finance deals, and will diminish somewhat. Or as the theory goes...

;-)

irrational exuberance

With big banks tottering, VCs may find all their exits blocked

old-and-in-the-way — Wed, 19 Mar 2008 10:38:55 PDT

Hmmm, I see the quality of Valleywag's community is slipping indeed.

old-and-in-the-way

With big banks tottering, VCs may find all their exits blocked

fishneversleep — Wed, 19 Mar 2008 10:28:59 PDT

Meh, who cares what the Chron writes about business? The only person worth reading there is Steve "When Animals Attack" Rubenstein.

fishneversleep

With big banks tottering, VCs may find all their exits blocked

KyleShank — Wed, 19 Mar 2008 10:13:02 PDT

Angel investment is the new Venture Capital

KyleShank

With big banks tottering, VCs may find all their exits blocked

matto — Wed, 19 Mar 2008 10:08:43 PDT

I thought M&A was the new IPO

matto

With big banks tottering, VCs may find all their exits blocked

old-and-in-the-way — Wed, 19 Mar 2008 09:55:23 PDT

The story was a bit waterlogged by lack of explanation concerning why M&A would suffer. If the buyer has a lot of cash -- and the big tech companies all do -- then bridge financing in an M&A is not a big risk for any investment bank with cash. And most of them still have cash. This is a relatively painless way to earn fees.

It's a buyers' market, so prices for M&A deals will be down, but that's not a liquidity issue.

I might be missing something here. How exactly does the current debt liquidity problems hurt tech M&A in any signficant way? I'm honestly curious.

old-and-in-the-way