Slowdown in M&A Activity Does Little to Dent Private Valuations for US Communications Companies

By Jeff Johnston

June 5, 2023

Key Points

  • The feverish pace of M&A activity in the U.S. communications market has seen a considerable slowdown over the last 12 months.
  • Concerns related to the economic environment, rising interest rates and supply chain delays have all played a role in the slowdown.
  • Despite this weakness, valuations for private communications companies remain healthy.
  • Supporting these company valuations are their attractive growth prospects, dominant market share position and high brand equity, as well as government financial support for new network builds.
  • Looking ahead, we expect M&A activity to pick up once the aforementioned headwinds subside, as the consolidation theme for private communications companies still has a long way to go.

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