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Torrid Pace Of Mergers and Acquisitions
As seen in San Jose Business Journal
by Dennis Taylor, Staff Writer

In the small company sector - businesses with annual revenue of $1 million to $50 million - the resurgence of the semiconductor business is boosting profits of the smaller companies that provide goods and services to them, said Michael Sipe, president of San Jose-based Private Equities, a firm specializing in mergers, acquisitions and business development.

"The money chasing small companies from out of the area is quite strong and seems to be improving," Mr. Sipe said. "There are a lot of investment groups and corporate buyers who are looking to buy into Silicon Valley."

Compounding the consolidation pressure is the price of rental space in the valley. Mr. Sipe expects the rental increases to have a significant impact on the profitability, and may cox some to consider corporate marriages as a way to cover inflationary overhead costs.

"Rental rates can have a pretty tremendous effect in some cases," Mr. Sipe said.
 

Michael Sipe is president of Private Equities, a middle market mergers and acquisitions firm. You can reach him on:408.295.4299 or at inquiry@private-equities.com.
 

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