Summer 2025 M&A Update
Middle market M&A activity remained muted in the first quarter of 2025, with political and economic uncertainty weighing heavily on the market. The U.S. economy experienced a contraction in the first quarter of 2025, with real GDP decreasing at an annualized rate of 0.3%; this represents the first quarterly decline in GDP since the first quarter of 2022. In the prior quarter’s newsletter, we highlighted tariffs as a potential obstruction to deal and overall economic activity, as the GDP decline seen in the first quarter was partly attributed to a surge in imports ahead of these potential tariffs. Additionally, cautiousness regarding rate cuts persists, as President Trump and Chair of the Federal Reserve, Jerome Powell, remain at odds with one another over the path of future rate cuts. This uncertainty stemming from potential tariffs and interest rate decisions, if unresolved, could suppress deal activity through the balance of the year, as it likely did in the first quarter of 2025.
FEATURE ARTICLE
Financial vs. Strategic Buyers
Also in This Issue
U.S. Deal Value & Volume
EBITDA Multiples
EBITDA Multiples by Buyer Type
U.S. Deal Volume by Industry
Debt Multiples
Number of Deals by Buyer Type