Eaton Square

It is the Best of Times. It is the Worst of Times. Like Charles Dickens’ A Tale of Two Cities, the U.S. M&A market under Trump’s second administration is both dynamic and daunting. As the CEO of an international M&A services firm, I am watching firsthand as the deal-making landscape shifts in ways that are new, promising and precarious. On one hand, lower corporate taxes, deregulation, and a business-friendly White House have created a favourable environment for deal-making. On the other, market volatility, trade wars, and an evolving geopolitical strategy have added new layers of complexity and risk to M&A. At the core of these shifts is a fundamental change in America’s economic philosophy that I think could be fascinating to understand for corporations everywhere — that is that the US Government strategy is no longer rooted in neoliberal globalization, but instead in mercantilist hegemony, a mindset that prioritizes national power, economic dominance, and control over global trade flows. This shift will fundamentally reshape the US Government’s approach to governing and we are starting to see just the beginnings of how this will impact?M&A strategy?in the U.S. forcing companies to rethink domestic consolidation, foreign expansion, and cross-border transactions. Learn what the Mercantilist-Hegemonic Mindset means for your business. If you're considering M&A in this shifting landscape, let’s talk. I’d be happy to share insights on how companies are adapting and what it could mean for your strategy. Send me a message — I’d love to hear your thoughts. Reece Adnams

Sectors Now in Hot Demand 1.?Electrical Infrastructure Sector Maintenance Suppliers Interest: PE firms are keen on businesses involved in the transformation of the electricity grid. Examples of Target Companies: Companies selling high-end safety products such as gloves costing $500 a pair. Suppliers of specialized equipment like winches and spooling devices used for deploying new electricity cables, with costs up to $500,000. 2.?Infrastructure Maintenance Companies Interest: Firms engaged in maintaining large infrastructure assets. Focus Areas: Roads, bridges, water infrastructure, oil and gas, electricity assets. Desired Business Type: Blue-collar companies with long-term contracts for repair and maintenance. 3. Field Services Companies Interest: Companies providing various field services with long-term contracts and stable customers. Examples of Target Services: HVAC Safety systems Fire systems Elevators Landscaping and maintenance for corporate customers 4. Pharmaceutical Distribution and Supply Chain Companies Interest: Companies involved in the complex logistics of pharmaceuticals. Focus Areas: Moving and storing pharmaceuticals, providing ancillary products except for the actual drugs. Preferred Business Type: Specialist pharmaceutical distribution and storage companies with intricate storage and movement requirements. 5. Food Packing and Distribution Companies Interest: Businesses in food processing, packing, storing, refrigeration, and distribution. 6. Professional Services Firms Interest: Firms providing essential professional services. Focus Areas: IT services, including cybersecurity. Program management. If your business aligns with any of these sectors and investment criteria, please send us a message at: [email protected]

I recently spoke with a couple of private equity firms about what they are currently looking to buy. Here are some common themes and their desired targets: - Enterprise Value (EV):?$10 million - $200 million - Investment Range:?$10 million - $100 million - Position Preferences:?Open to control positions 51% to 100% or significant minority positions 30% to 50% Sectors Now in Hot Demand 1.?Electrical Infrastructure Sector Maintenance Suppliers Interest: PE firms are keen on businesses involved in the transformation of the electricity grid. Examples of Target Companies: Companies selling high-end safety products such as gloves costing $500 a pair. Suppliers of specialized equipment like winches and spooling devices used for deploying new electricity cables, with costs up to $500,000. 2.?Infrastructure Maintenance Companies Interest: Firms engaged in maintaining large infrastructure assets. Focus Areas: Roads, bridges, water infrastructure, oil and gas, electricity assets. Desired Business Type: Blue-collar companies with long-term contracts for repair and maintenance. 3. Field Services Companies Interest: Companies providing various field services with long-term contracts and stable customers. Examples of Target Services: HVAC Safety systems Fire systems Elevators Landscaping and maintenance for corporate customers 4. Pharmaceutical Distribution and Supply Chain Companies Interest: Companies involved in the complex logistics of pharmaceuticals. Focus Areas: Moving and storing pharmaceuticals, providing ancillary products except for the actual drugs. Preferred Business Type: Specialist pharmaceutical distribution and storage companies with intricate storage and movement requirements. 5. Food Packing and Distribution Companies Interest: Businesses in food processing, packing, storing, refrigeration, and distribution. 6. Professional Services Firms Interest: Firms providing essential professional services. Focus Areas: IT services, including cybersecurity. Program management. If your business aligns with any of these sectors and investment criteria, please send us a message at: [email protected]

Selling your business is a big deal—it’s not just about numbers, it’s about your hard work, your people, and your future. I know firsthand how important it is to get this right. That’s why my team and I at Eaton Square put together?The Complete Guide to Selling Your Business—a free eBook packed with real-world insights and strategies to help you make the best decision for you. In this guide, you’ll find: - How to make your business more attractive to buyers and boost its value - Why relying on a single buyer can be risky (and what to do instead) - What buyers are really looking for—and how to position your business for success - A step-by-step look at the sale process, from valuation to due diligence - Tips on preparing for life after the sale, both financially and personally Selling your business isn’t just about getting the best price—it’s about securing your legacy and ensuring a smooth transition for your team and clients. Download your free copy now, and let’s get you on the? path to a successful sale: https://lnkd.in/gU3SGucR P.S.?Have questions about selling your business? Send me a DM, l'll be happy to help. Sincerely, Reece Adnams

Pricing and leverage metrics remain unchanged for February, with liquidity conditions still highly aggressive. Middle-market M&A activity is subdued, driving fierce competition, while issuers benefit from favorable terms, flexible covenants, and surplus liquidity expected to persist through Q2. Read the full report?to prepare for what’s next. https://lnkd.in/gjSAHeiD

Why Mike Mufson of Mufson Howe Hunter?M&A Advisory joined Eaton Square.

In M&A, EBITDA is often the key measure of business value. Yet, many buyers hesitate when a company has an EBITDA margin below 20%, assuming it’s less profitable or less desirable. That bias, however, overlooks the real strengths of high-volume, low-margin businesses. At Eaton Square, we know that low-margin doesn’t mean low-value—and the right buyer sees the opportunity, not just the numbers. Who’s Buying Low-Margin Businesses? (And Why That’s an Advantage) Read full article: https://lnkd.in/dCHkZup5

Why Lexington M&A Joined Eaton Square—And Why It Matters In today’s volatile M&A market,?having international reach isn’t optional—it’s essential. That’s why?Lexington M&A, a Cardiff-based boutique firm, joined?Eaton Square. With rising interest rates, inflation, and supply chain disruptions, UK business owners need?global buyers and fundersmore than ever. Lexington, now a team of?40, knew that to compete, they needed a?strong international network—and Eaton Square delivered. Why Eaton Square? ??Global Reach?– Access to the right international buyers ??Growth & Influence?– A network where firms shape the future ??The Right Fit?– A team that understands M&A inside and out For M&A firms today,?going global is no longer a luxury—it’s a necessity. Ready to expand your global footprint? Let's talk.. #MergersAndAcquisitions #M&A #PrivateEquity #EatonSquare #InternationalM&A #InvestmentBanking

PitchBook anticipate further growth in 2025, as markets are back to a risk-on footing after closing out one of the most turbulent periods since the global financial crisis. Download the report here: https://lnkd.in/d4wNAap3

In 2024, the public relations sector maintained its rapid pace, with over 80 deals recorded for the second consecutive year. Smaller acquisitions, independent buyers, and private equity-backed consolidators drove this dynamic activity, focusing on growth and expanding value-added services. Thank you, Paul at PRovoke Media, for quoting me in your 2024 Global PR M&A Review. If you are interested in reading more, please click the link below: https://lnkd.in/eGTwx3g6