Q&A: The dotcom bubble


With the bubble having burst on the share price of internet consultancies, do you believe more traditional companies will snap up new economy organisations?
A We may see a greater instance of acquisitions where dotcoms have innovative technology of substance, and the acquiring firms have the relevant experience to qualify their value.

Q Any drawbacks to the deals?
A Many accountancy firms do have significant experience in new technology and IT issues. There are many firms however that do not have the knowledge pool that firms such as Arthur Anderson possess. It would be difficult for these firms to assess the risks involved in making dotcom acquisitions.

Q Where do you see the market heading?
A We will see more consolidation between the new technology companies and the traditional business format. In the future there will be a greying of the current demarcation line between new technology companies and the more established service companies. In short it is consolidating with reality and the future looks bright.

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