Blowout sale of Swedish tech firms
Venture capitalists to sell technology companies at discount prices.
RELATED NEWS:
• Sweden’s hottest tech start-ups
The recession put a stop to venture capital’s planned divestments. Now analysts predict a blowout sale of Swedish technology companies during 2010.
"Since the economy went in the tank, there really hasn’t been a single public offering worth mentioning, neither in Europe nor in the United States. The appetite for acquisitions is very, very limited", Staffan Ingeborn of private equity firm Innovationskapital told Computer Sweden.
There are clear indications that 2010 will be a year defined by company sales and stock introductions – regardless of price tag.
"If you can’t make your exits as planned, you’re stuck with a bulging portfolio. Plus, during rough times the remaining businesses need more financing. Everybody’s sitting on companies they’d rather be rid of, but haven’t been able to" Staffan Ingeborn told the newspaper.
During the first half of 2009, Swedish venture capital firms only registered 41 sales, of which 9 were bankruptcies or buybacks. This is one of the lowest figures ever, and activity kept at a low level for the rest of the year, according to the Swedish Private Equity & Venture Capital Association.
Jonas Vesterberg is a U.S.-based journalist and communications consultant.
Last Updated (Wednesday, 17 February 2010 17:27)
