System integration and telecom firms realized strong valuation multiples as well, although only half that of the Internet sector in some cases. As shown in Exhibit 5, although multiples were high for all technology firms, they declined as a function of revenue. As with valuations in general, small firms realized much larger growth rates in the valuation multiples versus the larger companies. These findings clearly suggest a course of action for owners and managers of technology firms. First, if you are thinking of selling or merging, now is the time to do it.
Premiums are at historical highs and favorable trends continue.
Second, your firm does not have to be a proven performer to realize a lucrative deal. Furthermore, small firms are garnering significantly larger valuations relative to the bigger players. Whether this is due to growth prospects, synergies, real options, or cheap money from high stock valuations remains to be seen. Internet Security Andre Mousseau Only months after the digital world declared victory over the millenium bug, several high-profile incidents have revealed the Internet's vulnerability to attacks at the hands of seemingly harmless foes. While the methods of these attacks, which recently have included denial of service attacks, email viruses and cases of outright theft, are radically different, they have all helped prove what security experts have been saying all along - today's Internet is far from secure.