Venture Capital firms turn to M&A more for exits

"Pressure mounts on 1999, 2000 vintage-year funds as IPO market 'calcifies'"

This article is a very telling article on Venture economics and some of the hangover still left from the glory days. A lot of the pitches from the companies on the shopping block will be very slick and convey visions of huge potential.
In reality, they are where they are for a reason. A lot of the companies that are looking for M&As tend to be zombies and would very likely disappear if not for the M&A activity. There will be a gem or two that pops up once in a while but acquiring companies need to be extremely careful so as not to get stuck with the walking dead.