Feeds

Y2K bug eats into VC deals

Investments will be held over to avoid impact of date change

  • alert
  • submit to reddit

High performance access to file storage

UK venture-capital firms are delaying business deals for fear of the Y2K bug, according to a BDO Stoy Hayward report. Venture-capital houses are postponing acquisitions and sales until next year due to concerns that companies are not ready for the millennium threat. Around 34 per cent of the 96 venture-capital firms questioned by accountancy firm BDO Stoy Hayward forecast fewer deals in the last three months of this year – and all because of the bug. Peter Hemington, head of mergers and acquisitions at BDO Stoy Hayward, said: "Owners of companies wishing to sell or seeking finance could find it difficult to get their deal away in the last quarter." He advised companies to act quickly to get a sale in late summer or early autumn to give buyers time to iron out possible glitches. Companies most likely to be affected by the bug were financial services, IT and distribution businesses, said Hemington. "A couple of houses have said off-the-record their investment committees are demanding good reasons not to delay acquisitions in affected sectors in the last quarter until after January," he added. The findings follow last week’s statement by Taskforce 2000, the government watchdog, that 300 of the UK’s biggest companies had not started to prepare for the bug. ®

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.