Montgomery & Co Projects Deal Volume to Grow by 167% in Just 2 Years with No End to Growth in Sight
On the third Wednesday of every month I co-chair a meeting called the SoCal VCA (venture capital alliance), which represents participants from all of the top venture capital firms in Southern California as well as prominent members of the Tech Coast Angels (TCA). We meet to discuss trends in the industry and to find ways to work together to help with SoCal deal syndication – somethings that happens automatically on Sand Hill Road in NorCal due to proximity.
We feature a prominent speaker at every event. This morning we heard from Jamie Montgomery, CEO of the venerable Montgomery & Co investment bank who is at the heart of what is going on in M&A for venture backed companies. They do around 7% of the total VC-backed deals in the US per year or just under 40 deals / year on average (present year excluded!)
I have to admit that I was greatly encouraged by Jamie’s outlook for venture backed companies, which if true will be a welcome relief for our industry. No doubt a tech M&A banker would have a bias to say that the world ahead looks rosy, but however you want to put a spin on the next 2 years I think you’ll find this data very interesting and useful. Where I add commentary from myself or my fellow VC colleagues from our discussion after Jamie left I’ll put in red.
Summary of Montgomery & Co’s views on the road ahead for tech M&A of venture backed companies: (the whole presentation is later in the post, which I suggest you look at because it has insightful data. If you want to download the document I’ve made it available at my favorite document sharing site DocStoc).
1. 2009 has been the worst year for M&A in a decade.Read More