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The Waltham, Massachusetts, investment bank is called Broadview, but Patti Deninger's thoughts on the high-tech market are not always broad. In fact, Broadview's chair and CEO has very specific thoughts on how the technology sector can improve, and he should know. Broadview specializes in mergers and acquisitions in the high-tech field, and they also have their own venture capital fund. But not everybody has wanted to hear Deninger's advice. Three years ago, at a European Technology Roundtable conference, he was nearly booed off the stage when he warned Internet entrepreneurs that the bubble could soon burst. It did, of course--but worse is yet to come, according to Deninger.
So if you were king for a day?
PAUL DENINGER: There are three things I would do, if I could wave my magic wand. First, I would reduce the number of public companies. There are 1,600 to 1,700 public companies in technology. That number has to com, down by at least 300 to 500, maybe more, and the way for that to happen is for those companies to merge. There is also dramatic over-funding for technology companies, and [reducing] that would help stabilize the public market. And then one step back in the food chain, a ...
Source: HighBeam Research, The lowdown: this expert says tech has to get even worse before it...