M&A mania rolls, but for how long?
- By Nick Wakeman
- Feb 21, 2008
In 1999, I wrote an article that said 49 acquisitions would close in the government
services sector that year.
I described the "torrid pace of consolidation." Well, that 1999 pace seems
rather tepid now compared to the pace of acquisitions
in the past four years. Nearly 100 deals closed in 2007,
and 398 deals have closed since 2004.
That's an amazing statistic to me. But like the housing
bubble, I don't think that pace can be maintained.
The sheer number of closings has to come down ?
perhaps not in 2008 or 2009, but
What I think will not change is
that certain core companies will continue
to treat acquisitions as another
line of business that is expected to
generate a certain percentage of revenue
growth each year. Those companies
will keep making acquisitions
because it is what they do. It is another core competency for them.
Our annual special report on mergers and acquisitions lists all the deals that
closed in 2007 in the government services sector. That list and the top 10 deals
demonstrate that a variety of forces are at work driving companies and investors
to spend money in the government market.
As a barometer of the market, our list of transactions shows that confidence
in the government as a business opportunity is high.
Special thanks to Houlihan Lokey Howard and Zukin, which compiles the
annual list for Washington Technology, and our panel of experts who picked our
top 10 deals of 2007. We couldn't do it without you.
Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.