My Forecast for the US M&A Market in 2025

The US mergers and acquisitions (M&A) landscape is poised for significant growth this year due to numerous converging trends: pent up supply & demand, favorable economic conditions, declining interest rates, lower taxes & regulations, increasing shareholder activism, and greater corporate confidence. In addition to highlighting these trends, this article also points to key industries expected to lead this year’s growth in US M&A activity.

Trends Impacting The M&A Marketplace in 2025:

1.??? Financial Sponsors Reemerge: During the last three years, the M&A market softened because of increased borrowing costs and lower corporate valuations, resulting in sponsors delaying exits, and causing a pent-up supply. As of July of 2024, private equity and venture capital had $2.6 trillion in uncommitted capital resulting in an increasing inventory of aging private equity owned assets that need to be monetized.

2.??? More Cross-Border Deal Flow: The US continues to be a prime destination for higher growth compared to other developed economies, because it offers? greater access to capital and cutting-edge research.

3.??? More Favorable Antitrust and Regulatory Environment: The Trump administration “may lead to a resurgence in strategic activity in 2025 for deals of all sizes, especially megadeals hindered by increased regulatory scrutiny during the Biden administration,” says John Collins, Co-Global Head of M&A at Morgan Stanley, as more lenient antitrust and regulatory environments are expected under the Trump administration.

4.??? Reduced Corporate Taxes and Job Incentives: Businesses are hoping for legislation from Republicans that would lower corporate tax rates and promote US jobs.

5.??? Shareholder Activists: Shareholder activism continued to grow in 2024 for companies of all sizes. According to Michael Kagan, Head of Separations and Structured Solutions at Morgan Stanley, activist investors could push for changes at undervalued companies to force corporate separations.

6.??? Activity Spurred by Trade Tariffs and Risk: The recent U.S. presidential election is anticipated to introduce variables such as deregulation and potential protectionist policies, which could have mixed implications for the future M&A market. The US anticipates a sharp increase in deal-making as corporations and private equity firms assess their exposure to potential tariffs and trade risks; however, dealmakers should also remain focused on potential challenges, including volatile geopolitics, higher interest rates, and high valuations in certain markets.

Industry Analyses Highlight Several Key Sectors Expected to Lead M&A Activity in the US in 2025:

?7.??? Technology, Media, and Telecommunications (TMT): The ongoing advancements in artificial intelligence (AI) and digital infrastructure are anticipated to drive substantial deal-making in the TMT sector, with investments in AI infrastructure, including semiconductors and data centers, being particularly noteworthy.

8.??? Financial Services: The sector is projected to experience increased M&A activity as these companies continue to scale and seek innovation to remain competitive.

9.??? Energy: Driven by continued consolidation coupled with a more favorable regulatory environment.

10.??????????????????? Healthcare: As big pharma and medical device players look to acquisitions to drive growth.

11.??????????????????? Consumer and Retail Businesses: Strategic divestments and portfolio reshaping are expected to fuel M&A transactions, with companies focusing on core competencies and exploring growth opportunities.?

In summary, 2025 should be a dynamic year for M&A, with significant opportunities across various sectors and regions, but US businesses will need to remain agile and informed to navigate the evolving M&A landscape in 2025.

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About Greater Prairie Business Consulting, Inc.:

Greater Prairie Business Consulting, Inc. is an award-winning, national consulting practice serving entrepreneurs, small to mid-sized privately held and family-owned businesses and middle-market companies of any type with revenues between $1 million and $250 million. The firm helps small, mid-sized and middle-market companies maximize their performance and exit.

Greater Prairie Business Consulting, Inc. can be reached by calling 1-800-828-7585 or emailing [email protected].

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About the Author:

James J. Talerico, Jr. is an award-winning author, speaker, and a nationally recognized small to mid-sized (SMB) business expert.

With more than thirty- (30) years of diversified business experience, Jim has a solid track record and an A+ BBB rating helping thousands of business owners across the US and in Canada tackle tough business problems to improve the performance of their organizations.

His client success stories have been highlighted in the?Wall St. Journal,?Dallas Business Journal,?Chicago Daily Herald, and on?MSNBC’s Your Business. He was named “Texas Business Consulting CEO of the Year,” by?CEO Today Magazine, identified as a?“Top 10 Management Consulting Entrepreneur to Watch in 2023” by Entrepreneur Magazine, was listed among the?“10 Most Visionary Companies to Watch in 2023” by Inc. Magazine, and has also been ranked among the?“Top Small Business Consultants”?followed on?Twitter.

For more than half a decade, Jim was a regular guest on “The Price of Business,” a nationally syndicated radio program on Bloomberg Talk Radio and has also appeared as a subject matter expert on many FOX Radio interviews. He is a regular contributor to several blog sites and has frequently been quoted in publications like the New York Times, Dallas Morning News, Philadelphia Inquirer, The Entrepreneur’s Review, and on INC.com, in addition to numerous, other industry publications, radio broadcasts, business books, and Internet media.

Jim received a Gold?“Stevie Award”?for?“Thought Leader of the Year,”?a Gold?“Stevie Award”?for?“Media Hero of the Year During Covid”?and a Bronze?“Stevie Award”?for?“Best Entrepreneur”?in the Category of?“Business and Professional Services”?at the?American Business Awards ??in New York City. The competition received more than 3,700 nominations and is the premier accolade for business excellence in the US honoring organizations of all sizes and industries. Jim also received an?“Outstanding Leadership Award”?at the Money 2.0 Conference for his contributions to the financial services industry.

Jim is the author of “8 Steps to Becoming an ETHICS FOCUSED ORGANIZATION,”? a small business certification program that utilizes a unique eight – (8) step approach for strengthening ethics in any organization. The certification program won the Better Business Bureau’s “Torch Award for Ethics” for the North – Central Texas Region, the International Better Business Bureau’s “ Torch Award for Ethics,” and a Gold “Stevie Award” for “Ethics in Sales” at the International Sales & Customer Service Stevie Awards ?. Participants who complete this certification program are eligible to receive eight – (8) continuing education units from the University of Texas’ Division of Enterprise Development.

Jim received his Certified Business Exit Consultant (CBEC) ? designation from The International Exit Planning Association (IEPA) to help entrepreneurs, small business owners, family businesses, and middle-market companies maximize their business exit, and he received his certification in succession planning from the ASPE. Jim currently serves on the IEPA’s education committee.

Jim is also a Certified Management Consultant (CMC) ? and an active member of the Institute of Management Consultants.

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