Insight

Economic reality begins to bite into TMT deal activity

Continuing the downward trend from the previous quarter, the M&A market in TMT cools further in Q2’22

Chad Seiler

Chad Seiler

Partner, Deal Advisory, KPMG US

+1 408-367-7603

In Q2’22, the slowdown in TMT deal making that began in Q1’22 accelerated. This was largely a reflection of the jittery macroeconomic environment, with rising inflation and interest rates and falling equity markets.

Deal volume dropped 37 percent to 1,282 from 2,045 in Q1’22, and deal value was down 28 percent to $216 billion from $300 billion. There were 40 percent fewer technology deals in Q2’22 which were 10 percent more in value. Meanwhile, media deals dropped 32 percent slashing total value 60 percent, and telecom deals decreased 14 percent pulling down value 99 percent. (See the charts below for more data.)

Key trends in TMT in Q2’22 included:

  • The biggest decline in deal volume was in technology, with a 40 percent drop from Q1’22.
  • The biggest decline in deal value was in telecom, with a 99 percent plunge from the previous quarter
  • PE deal volume was also hit hard, with a 50 percent fall

The deal outlook for the second half of the year will largely depend on whether the U.S. economy avoids a recession. There will still be deal opportunities for TMT deal makers, but they will need to raise their game to find the right targets, strike appropriate valuations, and carve a path to profitability.

Our Q2’22 report analyzes the latest market trends and discusses KPMG deal professionals’ view of what may lie ahead. We also present the findings from our mid-year survey of 360 U.S. business leaders on their view of the M&A environment and trends.

U.S. TMT activity by sector

Within your industry, how strong is the appetite for M&A in Q2'22 as compared to 2021?


*Source: KPMG M&A Market Survey


Download the full report to understand better what drove TMT deal making in Q2’22, and what the rest of the year may have in store.

Reality bites
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Contributing authors

Roderick Moon

Roderick Moon

Managing Director, KPMG Corporate Finance LLC, KPMG US

+1 212-954-5834
Paul Harris

Paul Harris

Principal, Advisory, Financial Due Diligence, KPMG LLP

+1 212-872-4494
Phil Wong

Phil Wong

Principal, Advisory, Technology Industry Strategy, KPMG US

+1 617-899-8999
Joshua R. Potter

Joshua R. Potter

Partner, Advisory, KPMG LLP

+1 415-963-7355
Chad Seiler

Chad Seiler

Partner, Deal Advisory, KPMG US

+1 408-367-7603
Alex Paik

Alex Paik

Partner, Advisory, Financial Due Diligence, KPMG US

+1 408-367-7658