Deal activity in the Technology, Media, and telecoms (TMT) sector is gaining momentum, with GlobalData reporting a 27% increase in M&A deal value and a 14% rise in deal volume in 2024.
To better understand the trends driving this surge and how technology — especially AI — is influencing dealmaking and due diligence, I spoke with Chin-Harn Leong, a partner in KPMG UK’s TMT Transaction Advisory team.
With over 15 years of experience advising corporates and private equity investors across the TMT sector, Chin-Harn offers a front-row seat perspective on the evolving landscape of TMT M&A.
Q: Can you tell me about your current role and how your career journey has shaped your expertise in M&A transaction advisory?
I’m a partner in KPMG UK’s TMT Transaction Advisory team, working with both corporate and private equity clients on acquisitions, divestments, and complex carve-outs. My focus spans the full TMT landscape — from telecoms infrastructure and media platforms to high-growth technology businesses.
I’ve specialized in deals for over 15 years, with deep expertise in financial due diligence, including cross-border M&A, capital markets, and carve-out transactions. I lead multidisciplinary teams across KPMG – including tax, accounting, regulatory, and strategy – to help clients execute transactions with confidence. Transaction Advisory Services is often the spearhead of the engagement, shaping the deal narrative and surfacing key value drivers.
I began my career with EY in Malaysia as an auditor, gaining early experience across sectors such as shipping, construction, plantation, industrials, and property development. I joined KPMG UK Private Equity Team in 2007 and have been focused on TMT Transaction Advisory Services since 2010.
I also spent two years on secondment as Business Operations Leader for KPMG UK Deal Advisory, where I was part of the leadership team shaping strategy and driving operational performance.
Q: You’ve worked across such a broad mix of sectors and roles — what was it that made you land on TMT as your focus?
My interest in TMT began during a secondment to the M&A team at a major telecoms company. I was supporting a demerger transaction and spent six months working closely with the KPMG TMT Transaction Services team. I found the work fascinating and fast-paced. When I returned, they asked if I’d like to join the TMT team full time. I said yes, and I’ve never looked back.
What draws me to TMT is its impact. Telecoms, media, and technology aren’t just commercial sectors — they’re powerful enablers of progress. They connect people, expand access to education, and power the technologies that drive economic activity and innovation — all of which are fundamental to improving social mobility and creating wealth.
TMT isn’t just about innovation; it’s about unlocking opportunities for people, businesses, and societies.
Q: The TMT sector experienced a strong uptick in M&A deals last year. Is this something you observed? And how is the market performing this year?
That aligns with what I’m seeing. What’s interesting is that not only have the volumes increased, but the value of the deals has also risen. That’s a meaningful shift.
The underlying reason is that investors are showing greater confidence and are prepared to pay up for high-quality assets — businesses with strong foundational strength, such as robust cash flows, differentiated intellectual property, or those operating in defensible market positions. These are the types of businesses investors feel confident about.
I expect the market to continue improving gradually. Stabilizing interest rates and a narrowing of the bid-ask spread — two of the more significant headwinds in 2023 — are improving the conditions for dealmaking. As these dynamics improve, both strategic buyers and financial sponsors are showing renewed appetite and actively pursuing opportunities.
Q: You mentioned that deal values have risen, not just the volume. What do you think is driving that increase?
Two factors are at play. One is the large amount of dry powder accumulated in the private equity sector. Since private equity funds have a limited lifespan, they need to deploy that capital and generate returns before they can successfully complete their next fundraising cycle.
Second, interest rate stability is beginning to take hold. That reduces macroeconomic uncertainty, makes financing more accessible, and increases investors’ willingness to pay for the right businesses. What we’re seeing is that investors are prioritizing quality and leaning in more confidently where they see a compelling value creation story.
Q: How is the due diligence process changing in today’s M&A market, especially within TMT? And what role do technology, AI, and automation play in this?
Certain aspects are more prevalent now than before. First, the amount of data involved in due diligence has increased dramatically. The process is now highly data-rich, and we’re able to analyze granular, transactional-level data — particularly in TMT businesses with subscription-based revenue models — to extract sharper insights and stress-test the investment thesis.
Another key development is the growing role of AI. What was once a linear and manual process has become iterative and accelerated. AI compresses processing time and sharpens risk identification, enabling a more rigorous, data-led approach to diligence.
Beyond the financials, we’re increasingly assessing the technological maturity of a company. That includes evaluating platform scalability and AI readiness as part of core diligence. AI tools also enable us to digest and analyze far more data than before, creating a feedback loop where being AI-enabled is essential.
The most valuable outcome is the depth of insight we gain. This ultimately leads to a more informed view of value.
Q: Where is technology having the biggest impact on due diligence?
The biggest impact of technology is clearly in driving efficiency and precision. It enables us to do everything much faster and with a significantly higher degree of analytical rigor. This efficiency frees up resources, allowing teams to focus less on processing data and more on interpreting it — particularly in testing and validating key insights.
For instance, we can now test value hypotheses more rigorously. If we adjust levers like customer acquisition costs or marketing spend, how much will that likely affect future sales growth? We are able to apply statistical analysis to historical data to build confidence in how such changes could influence outcomes.
This ability to analyze and test assumptions using real data is hugely valuable when looking at business plans. When a company makes an assumption like, “If we do this, then that will happen,” we’re able to test it quickly by interrogating the underlying data.
In the past, this kind of analysis was manual and time-consuming. Now, technology lets us perform it at speed. In highly competitive auction processes or with premium assets, this capability can be decisive. Buyers who can reach conclusions quickly and validate assumptions credibly are far better positioned to transact with confidence.
Q: With the rise of AI companies, have you noticed increased investment in TMT? Is AI driving dealmaking growth in the sector?
Yes, I believe that’s true. AI dealmaking has shifted from being speculative to becoming a core component of strategic investments. Investors are no longer chasing the hype — they’re asking sharper questions about the maturity of a company’s AI capabilities, their scalability, and how defensible it is against replication by competitors.
The risk of “AI washing” — where companies claim AI credentials without meaning substance — is very real. That makes thorough due diligence essential to understand what the company actually delivers and whether its AI capabilities stand up to scrutiny.
AI companies that have built proprietary models, show genuine user traction, or demonstrate enterprise-grade integration — working with large customers and embedding solutions effectively — tend to maintain strong valuations.
Alongside these firms, there’s heightened interest in the infrastructure that enables the AI ecosystem. Data centers, fiber networks, and cybersecurity platforms are all seeing increased demand. They’ve become central to the AI-driven investment landscape.
