2025 could be the awaited comeback story for the broader M&A market!
2024 was a year of recalibration for most. We‘ve been ?lucky“ with strong growth in deal flow and value in a flat volume environment and had record pitch activity in 2024. We’re privileged to start 2025 with a very high quality backlog.
2024 saw M&A activity tempered by higher rates, geopolitical uncertainty, and cautious investors. But as the year closed, signs of optimism began to emerge.
2025 is primed to build on this foundation, with several key factors driving momentum:
1??Private equity dominance: Record levels of dry powder (~$4 trillion) are poised to fuel transactions, with sponsors ready to strike in tech, healthcare, and industrials.
2??Economic tailwinds: Easing inflation, stabilizing interest rates, and clearer post-election market dynamics are fostering renewed confidence.
3??Strategic plays: Corporates with strong balance sheets are looking to deploy capital in transformative, high-value deals. At the same time, more efficient and streamlined structures are a key focus, so we expect portfolio clean ups and resulting carve outs as well.
4??Sector-specific growth: Healthcare and tech innovation, energy transition projects, and infrastructure modernization will remain top priorities - all power alleys within what we cover in b2b distribution!
With both strategic and financial buyers stepping up, 2025 could redefine the M&A landscape.
Explore Baird’s full perspective here.
As the year comes to an end, Baird's Global Investment Banking group reviewed M&A activity from 2024 and made predictions of what to expect in 2025. The assessments and thoughts for what’s to come are outlined in our most recent market update.
Read the update here: https://bit.ly/3ZWregb
Group Financial Reporting Leader | Chartered Accountant (SA)
4 个月Still the best CA programme on the market! Brilliant!