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Americas Fiber Consolidation Sentiment Index
Fiber M&A surge—80% of industry leaders predict consolidation wave
AlixPartners survey reveals unprecedented consolidation appetite in U.S. fiber market
Ready or not, FiberCos are facing an incoming wave of M&A activity—and they need to properly position themselves now as a buyer or seller. A comprehensive AlixPartners survey of leading fiber operators, investors, and lenders reveals an industry on the brink of massive consolidation, with 80% predicting increased M&A activity in the next 12 months and 61% planning to participate in a transaction directly. Scale is critical in this business and players who can leverage M&A to reduce operating expenses while improving network capabilities will gain a distinct advantage.
Key highlights of AlixPartners’ Americas Fiber Consolidation Sentiment Index:
The sweet spot for deals:
95%
of respondents believe the highest M&A activity will target mid-sized fiber operators with 500,000 fiber passings or less.
The distress signal:
91%
of respondents believe consolidation will accelerate with more distressed assets coming to market in the next 12 months.
A Reality Check: Operators vs. Investors
Challenge |
Operators |
Investors |
| Construction and labor pose the biggest challenge |
20% |
44% |
| Cable and FWA providers are strong competitors |
47% |
12% |
| Anticipate ARPU headwind and its contraction |
64% |
19% |
Fundamental Drivers:
 |
The market has fewer large-scale assets after recent major acquisitions |
 |
Liquidity pressures are mounting across smaller players |
 |
Pockets for organic growth are becoming scarce |
 |
Scale and go-to-market / ops. proficiency will drive next wave of value creation |
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