Sponsor-Led Deals and Cross-Border Activity Driving M&A in 2025

Key Trends Shaping M&A Activity in 2025

Sponsor Activity Is Leading the Charge

Private equity and financial sponsors are driving M&A in 2025, now accounting for a significant share of deal volume. This momentum is fueled by abundant dry powder, strong deal appetite, increased support from lenders, and ongoing sector consolidation.

Cross-Border M&A on the Rise

Global businesses are prioritizing cross-border acquisitions to access new revenue streams, sustaining deal flow despite geopolitical uncertainty, especially in Europe.

Technology and AI Are Reshaping the Landscape

AI is transforming how companies operate, and M&A is accelerating this shift. Companies that quickly adapt and leverage new technologies are gaining a competitive edge.

Is Now Still a Good Time to Sell?

Despite macroeconomic uncertainty, it remains a favorable time for business owners to consider a sale. Prices and investor appetite are high, but businesses must be ready to adapt to changing conditions.

U.S. M&A Outlook: Sector Resilience & Supply Chains

Demand for deals is strong, with private equity firms holding significant capital. However, supply is tight, and buyers are more selective, making quality and positioning more important than ever. Companies with domestic supply chains are better positioned, as buyers favor businesses less exposed to global risks.

Sectors Expected to Perform Well

Service-based businesses and essential industries like automotive, especially those with North American operations, are showing resilience and attracting buyer confidence.

Advice for Business Owners

Not all businesses are ready to go to market immediately. Some may need to wait, and those in process should plan for longer deal timelines.

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