New Deal Era: Old Economy Wins the Favor of M&A Crowd

November 27, 2000

A year ago, buyout firms -- envious of the outsize returns made by venture capitalists in hot-coms -- nearly abandoned their traditional ways.  Like many overexcited individual investors, they began pouring money into tech and telecom, only to suffer steep losses.

Now, it is back to the future....

...The fire sale in the Old Economy seems to be gaining favor among financial buyers.  

There will be "a return of interest to Old Economy companies and companies that have cash flow," says Tom Shattan, co-founder of Shattan Group, a New York investment banking boutique....