In this clip from "The M&A Show" on Motley Fool Live, recorded on March 25, Motley Fool contributors Travis Hoium, Jason Hall, and Dan Caplinger
Then at the end of the day, I think we're going to see a lot of acquisitions of companies that were flying high at some point and just ran into a buzzsaw and in these market valuations dropping and at some point if you're an Instacart, you go, okay, if we think there's going to be five major players in this delivery market and we're not going to be one of them, we got to figure out what to do. I think this could be a sign that and we've been hearing rumblings about this for a while that tech companies that were raising at these astronomical valuations in private markets may have shot themselves in the foot in a way. There's going to have to be adjustments here from employees, from investors. A lot of strange dynamics going on here. I know this is a private company, but there is going to be an impact on public companies, whether that's through acquisitions or through being in a better financial position to hire talent.
Jason Hall: They're related. I think that's really important because one of the things that we saw over the past three years, maybe longer, it's been longer than three years, but a lot of disruptive companies that in the past would not have gone public at that stage of their growth went public. We're still very, very high cash burn that went public because there was a ton of investor capital that was willing to go into that risk. It's clearly backfired. I think backfired is probably a fair description because of there's been so much devaluing. If we go back to I guess it was a little over a year ago, guys tell me if it was a year or so ago when we had so many public issues that happen. We had Snowflake and Roblox was scheduled to IPO. That was late 2020, if I remember right. What we saw was through that IPO process, there was a mania where the company would set the IPO price and then like a week later that price was 50 percent higher. Then when they announced the date of the IPO, like the actual final IPO price may have been double when they started that whole process maybe double.
Travis Hoium: Well, you would see the same thing with SPACs, too. A SPAC would go up 50 percent just on rumors that they were going to merge with some company.
