M&A/investing activity decline sharply in 2001, Whitestone says.

Whitestone Communications (New York), which tracks M&A and investment deal activity for its annual Who's Buying Whom reference, reports that the total number of deals last year dropped from 830 to 609 while the total value of the deals declined 91%, going from $48.5 billion in 2000 to $14 billion.

Whitestone attributed the declines to the combined impact of the recession and the attacks on Sept. 11. Whitestone president Baran Rosen said that "we are already seeing a rebound in acquisition activity at Whitestone. In fact, we are representing more buyers and sellers than at any time in our company history. I am looking for 2002 to be a good year in terms of M&A."

Rosen added that "in terms of investment, I believe this will be slower to rebound. Many venture funds are tapped out or must hold reserves to aid ailing portfolio companies. It will take a good part of 2002 for the funds to become significantly active again."