While the benefits of the dramatic aerospace and defense consolidation of the 1990s seem obvious in hindsight, they were hidden treasures at the time. Once heralded as the twin engines of growth, these industries had simultaneously faded in the post-Cold War defense draw down and commercial aircraft order bust. Layoffs dominated the headlines and the only hope for new growth was perceived as diversification. Quarterdeck, however, started the decade with a different outlook on the marketplace, suggesting an aggressive remedy. In a January 1990 Aerospace Forum article in Aviation Week & Space Technology, Quarterdeck called for a rapid period of consolidation through an "aggressive merger-and-acquisition environment" to reduce the number of prime contractors, thus eliminating redundant capacity. Companies were reminded that this consolidation would be like a game of "musical chairs" with early adopters of this strategy paying less, having the most choices and being the most likely survivors.
Between 1995 and 1997, the prime contractor consolidation was in full stride and each successive deal pricing was richer and richer. If there were any "deals" still to be completed, a change of strategies was needed. Using profiles in periodicals such as Business Week, Washington Technology and Aviation Daily, Quarterdeck called for both companies and investors to look for mid-sized acquisitions in the fragmented government information technology and services space because they were "dirt cheap" and would experience value growth through increased government spending and takeover activity. Many of the most successful IT public companies that raised public capital at eye popping valuations during the first part of 2002 (such as Integrated Defense Technologies and Anteon) got their start in the federal marketplace through several transactions Quarterdeck advised on during this period.
In February 2000, just weeks before the NASDAQ hit its peak, Quarterdeck used the platform of CBS MarketWatch to make its case for a "turning point for the sector," stating that while most investors are "enthralled with 'dot.com' mania, prudent investors should rebalance their portfolios…and buy defense stocks at today's valuations." A month later the NASDAQ plum-meted and within weeks after that the boring "old economy" aerospace and defense stocks started to breathe life again.
These are larger illustrations of Quarterdeck's ability to anticipate and navigate the trends in these turbulent industries. For every "big picture" trend predicted in the press, hundreds of customized "behind the scenes" recommendations are made to clients. Quarterdeck regularly takes the pulse of the industry players, learning from the very people who define the market, maintaining an active role in these communities for better and for worse. Like a captain piloting a ship to safe harbor with charts in his hands but experienced knowledge of seas and sails as his true guide, Quarterdeck guides clients through rocky shoals and stormy seas, using a decade of insight that cannot be book-learned by freshly minted MBAs or the latest fair-weather fans of the latest hot sector.