Consolidation--The Juggernaut Hits the Wall

Peter Faucetta, CEO of New York-based Integrated Graphics (IGI), blames "lack of control and lack of management awareness.

The day-to-day business operations suffered mainly because management took their eye off the ball. Business looked too much into the market value."

All this, Norton explains, led to companies missing earnings projections or breaching the financial covenants contained in the financing that they received to buy companies. "When the money dries up, so do the acquisitions," he declares.