Slowdown in M&A Activity Does Little to Dent Private Valuations for U.S. Communications Companies - CoBank Site

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

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.

Disclaimer: The information provided in this report is not intended to be investment, tax, or legal advice and should not be relied upon by recipients for such purposes. The information contained in this report has been compiled from what CoBank regards as reliable sources. However, CoBank does not make any representation or warranty regarding the content, and disclaims any responsibility for the information, materials, third-party opinions, and data included in this report. In no event will CoBank be liable for any decision made or actions taken by any person or persons relying on the information contained in this report.

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