Having been on the inside of a lot of deals, one thing I have learned is that not all companies looking for an exit are acquired. Some pull out of the market with valuable lessons learned while others continue to generate great cash flow as a good life style business for the founders. A small percentage just run out of time and regrettably need to close their doors. Having said that I am also of the opinion that most any software or IT services company can successfully get a deal done in today's tough, highly-volatile economic climate. It takes patience, reasonable expectations and being properly prepared for the extensive business assessment that precedes offer letters and the scrutiny of lawyers and auditors during due diligence. It also requires a motivated seller and an informed buyer who acknowledges the strategic value and potential contributions of the seller and is able to justify (think ROI, EPS and risk mitigation) that THIS acquisition is superior to any do nothing, build or partner alternative.
Good deals get done because of good timing and solid preparation.