One of the biggest deals announced in recent weeks was for cash. Some investment bankers remained optimistic activity may pick up later this year. Technology will be the most active industry if there is a rebound this year, said Robert Thornton, Deutsche Banc Alex. Brown's head of West Coast technology mergers and acquisitions. One thing that has clearly changed is that people have gotten over the fact that companies that were worth twice as much six months ago or three months ago than they are worth now.
People have a sense of what reality is today.
Thornton said software was one sector he was seeing a revival in merger activity, especially software that supports data storage and retrieval over networks. McClelland said the tech downturn has made potential buyers favor strategic mergers that boost earnings immediately. With credit markets drying up and investment banks holding off many initial public offerings until the equity markets revive, one way out for a cash-strapped company is a takeover. It's really becoming a buyer's market. The Divide Can astrologers correctly predict earthquakes.