M&A slump. (Investments & Finance).

Orange County saw 20 percent fewer mergers and acquisitions last year and the dollar value of the deals that did take place plummeted by 70 percent, according to Los Angeles-based Houlihan Lokey Howard & Zukin's Mergerstat LP.

The number of deals involving Orange County companies fell to 234 last year from 290 in 2001. The dollar value of those transactions fell even steeper, to $2.78 billion from $10.1 billion in 2001.

"The driving factor for lower volume has been pricing and financing," said Daniel Lubeck, managing director at Newport Beach-based Solis Capital Partners, a private equity fund.

Until six months ago, owners still were seeking to sell their businesses at higher valuations, Lubeck said. That's one reason why the number of deals was down last year.

And those that sold did so at prices more in line with the market, which has brought valuations in tune with Wall Street and the tepid economy, Lubeck said.

Orange County companies bought 141 businesses last year, down from 152 in 2001, according to Mergerstat. They spent $1.61 billion on acquisitions last year, off from $3.85 billion in 2001.

On the flipside, 93 companies were bought in deals valued at $1.17 billion last year. That was down from 138 acquisitions worth $6.23 billion in 2001. The average Orange County deal size fell to $12 million last year, down from $35 million in 2001.

The biggest deal of 2002 came late in the year: Chicago-based Tribune Co.'s buy of two TV stations from Santa Ana-based. Acme Communications Inc. The deal, announced Dec. 30 and set to close in the first quarter, is valued at $275 million.