Positive trendlines for Mergers and Acquisitions usher in 2025

Commentators have all given a flurry of predictions for the Mergers and Acquisitions market in 2025, subject to the usual caveats. There is much speculation that 2025 could see significant levels of M&A activity, compared with 2024, which saw positive trendlines, including rising Private Equity activity and a surge in trading multiples on Public companies1.

The UK as a destination of choice for acquisitive organisations and financial investors/Private Equity firms remains a strategic driver2. An active domestic M&A market persists in Britain and market conditions continue to evolve, with easing inflation, interest rate moves, and other trends that positively influence M&A activity, both within key sectors and geopolitically.

A number of sectors are showing positive signs of increased M&A activity and are likely to set the pace of dealmaking in 2025. The Tech sector remains one to watch, with analysts anticipating increased deal activity, driven by investors in Cybersecurity, Artificial Intelligence and Automation, building out from key movements within the space. Commentators point out that Tech companies have more capacity to pursue M&A in 2025 due to improving valuations and revenue outlooks3.

The impact of interest rates cannot be ignored, particularly when rate cuts are considered very likely by most speculators. Any lowering of interest rates will likely act as a stimulus due to their impact on the cost of acquisition financing. All eyes will be on President Donald Trump’s moves with regard to the US economy, which will likely influence strategic acquisitions in North America, the UK and Europe, as multinational organisations and financial investors react to policy moves.

Private Equity firms and other financial acquirers will continue to make their presence felt, building from a strong base last year. Recent market commentary suggests that any ease in interest rates would help the sector deploy its ‘mountain’ of uncommitted capital. EvolutionCBS has extensive links with the Private Equity community and will continue to build this network throughout 2025.

“Our team have hit the ground running this year, focused on a number of significant transactions, including a large deal in the confidential waste management sector industry likely to be completed in Q1. Despite headwinds, we stand firm in our belief that good acquisition opportunities exist for those well-prepared businesses choosing to sell in 2025,” comments Mike Whittle, Managing Director of EvolutionCBS.

The experienced Deal Team at EvolutionCBS is planning to build out support services to assist business owners to prepare and optimise their success planning journey. EvolutionCBS aims to complete a growing number of transactions in 2025 after delivering a strong close to 2024, with the completed sale of our client, Cold Tech (Services) Limited (an established provider of commercial electrical and refrigeration services), acquired by Nene Capital, a long-term investor in small and medium-sized enterprises.

For dealmakers, shareholders and company directors considering a sale in 2025 the above trends should inspire confidence, not least due to the presence of active financial investors/Private Equity firms and the positive sentiment around policy moves with regard to potential interest rate cuts.

 

  1. Pitchbook: Global M&A Report.
  2. LSEG Data and Analytics “Exploring deal making – an H1 deep-dive”.
  3. S&P Global Market Intelligence: M&A Bright spots, shadows on dealmaking horizon.

 

 

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If you would like a no-obligation consultation on the sale of your business or would like to discuss our Business Valuation Service, click here.

As a long-established premium provider of business sale advisory services to UK businesses, EvolutionCBS offers business owners a complimentary and confidential discussion on how their specific objectives could be met and provides them with pragmatic, practical advice on how to begin preparing both themselves and their businesses for future sale or investment.

EvolutionCBS works with owners of UK businesses in any sector, finding buyers from around the world through highly targeted research and supporting clients with dedicated Director-led teams, at every stage of their journey to a successful sale or investment.

If you are an owner or shareholder of a business and would like a no-obligation consultation on the sale of all or part of your business, please email: info@evolutioncbs.co.uk  or contact us on Tel: 0118 959 8224.

 

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