In 2022, the technology services M&A market had mixed results, with lower middle-market deal volume and valuations decreasing by 10-15% and 20-25%, respectively. However, downturns historically present attractive opportunities for strategic acquisitions, and compressed valuations may make many deals too good to pass up. In 2023, private equity firms are expected to be the primary drivers of M&A activity in the IT services sector. Overall, the technology services M&A market has demonstrated impressive resilience in the face of multiple macroeconomic pressures, and every sign indicates it will continue to do so. So we expect to see deal activity to spike once again in late 2023.
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