M&A Dip Not Hurting Private Communications Companies' Valuations: CoBank
Slower M&A activity in the U.S. communications market over the past 12 months hasn't notably affected valuations for private communications companies, CoBank said Monday. It said the slowdown stems from concerns about the overall economy, rising interest rates and supply…
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chain delays, and a big drop in deals for fiber transport likely has more to do with the lack of networks available for sale. It said private market valuations are often performing better than their publicly traded counterparts -- often because smaller rural providers are in less competitive markets. Private communications providers also benefit from having growth opportunities via unserved and underserved markets, it said, while fiber overbuilders benefit from having no linear video assets to manage as they target high-growth vulnerable markets. It said M&A activity should pick up once a corner is turned on economics.