Helping clients meet their business challenges begins with an in-depth understanding of the industries in which they work. That’s why KPMG LLP established its industry-driven structure. In fact, KPMG LLP was the first of the Big Four firms to organize itself along the same industry lines as clients.

How We Work

We bring together passionate problem-solvers, innovative technologies, and full-service capabilities to create opportunity with every insight.

Learn more

Careers & Culture

What is culture? Culture is how we do things around here. It is the combination of a predominant mindset, actions (both big and small) that we all commit to every day, and the underlying processes, programs and systems supporting how work gets done.

Learn more

Challenging times – M&A trends in technology, media, & telecom

Lingering economic uncertainty dampened activity in Q1’23. Deal makers will stay cautious amid still high inflation and capital cost.

The slowdown in deal making that began in mid-2022 became more pronounced in Q1’23, with deal volume down by 23 percent and deal value sinking by 60 percent from the previous quarter.

Technology deal count slid to 778 from 1,034 in Q4’22, while deal value dropped to $46.6 billion from $84.7 billion. Although the fall in the volume of media transactions to 279 from 341 in Q4’22 was relatively modest, deal value plunged to $900 million from $30.8 billion. Telecom transactions decreased 21 percent to 58 from 73 in Q4’22, and deal value sank 67 percent to $4.5 billion from $13.6 billion.

M&A in Q1’23 was marked by these trends:

  • The Fed factor: The Federal Reserve’s hawkish stance on interest rates to combat stubbornly high inflation was a major factor fueling negative sentiment among deal makers.
  • Much smaller deals: Transactions were much smaller than those completed during the post-pandemic M&A boom. Mega deals all but disappeared.
  • Valuation gap: Amid rising interest rates and falling asset valuations, there was a big gap between the price at which buyers and sellers are willing to strike a deal.

With inflation still high and the possibility of higher interest rates for longer, most TMT deal makers will maintain a cautious stance. Attitudes (and activity) are unlikely to turn more positive until they see signs of lower inflation sticking and the cycle of rate hikes ending—which is necessary to ease the cost of financing deals. However, we do not expect rate cuts until 2024 barring a financial crisis.

Download our report for a comprehensive review of the TMT deal trends in Q1’23 and KPMG deal professionals’ views on how the next quarter may shape up.

Dive into our thinking:

Challenging times M&A trends in technology, media, & telecom

Download PDF

Explore more

Explore other services tailored to your business

Thank you!

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

Use this form to submit general inquiries to KPMG. We will respond to you as soon as possible.

By submitting, you agree that KPMG LLP may process any personal information you provide pursuant to KPMG LLP's Privacy Statement.

An error occurred. Please contact customer support.

Job seekers

Visit our careers section or search our jobs database.

Submit RFP

Use the RFP submission form to detail the services KPMG can help assist you with.

Office locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.