No Match Found
Deal activity in the media and telecommunications sector continued to slow in the first half of 2023 following record highs in deal volume and value just two years ago. While capital constraints, high interest rates and regulatory scrutiny all likely played a role in a 20% year-over-year decrease, the period did see 3,609 deals announced during the last 12 months.
As we look to the second half of 2023, dealmakers will continue to face economic hurdles and we expect deal volume in the sector to remain lower than the record highs during the pandemic. As media and telecommunications remains central to many sectors’ growth strategies, we remain optimistic that strategic deal opportunities will continue to arise within the sector throughout the remainder of 2023.
Expensive financing compounded by active regulators has not been kind to the recent M&A market. As a result, many strategic and financial buyers are focused on operational improvements within their existing businesses to help generate incremental margin. And those with strong balance sheets are looking for bolt-on acquisitions to round out their portfolios.
Strategic positioning is the flavor of the month (or last 12 months for that matter), and that will allow media and telecom businesses to respond aggressively once the markets turn around in their favor.
Learn more about leading practices and transformational mindsets in PwC’s new M&A integration report.
“This isn’t the first time we’ve all lived through an M&A market slowdown. However, the current environment remains challenged by a prolonged disconnect in valuations between buyers and sellers.”