M&A conference recap executive summary
Optimism abounds. Hundreds of deal professionals met to exchange deals and share best practices, and the overarching sentiment is that deal volumes and values will be higher in 2025 than the past 2 years. While no one is predicting values will rebound to 2021 levels, the early indications based on the number of holdover deals from 2024 will launch 2025 off to an impressive start. Sentiment is high that valuation multiples will increase for scaled, professionalized platforms as well as for AI and innovative models.
In 2021, we witnessed a record booming M&A deal environment, but in the following years with inflation and rising costs deals slowed over the past two years. In Q4 2024 deal values increased driven by optimism for a pro business environment. Beyond the markets impact; the increase in rollover private equity deal structuring and rise in retiring boomer exits is fueling the volume of deals. Also contributing to the increase in deals is growing interest and deal activity from foreign buyers and long-term buy-and-hold investors. Overall, for entrepreneurs a small amount of preparation goes a long-way to attracting a qualified buyer/investor.
M&A Deals Best Practices & Discussions Highlights
- Market Recovery Trends – After an M&A activity peak in 2021, 2023 saw significant declines due to high inflation, increased interest rates, and global uncertainty. Last year showed early signs of recovery: "Rates came down off their peak," said Graeme Frazier, President at PCR Partners. “Plus, lenders started to go a little more risk-on, so the spreads on rates have also come back." The "Market Update” panelists were generally optimistic for 2025, particularly for the second half.
- Trust and Disclosure – Lindsey Wendler, Managing Director at 414 Capital, said that undisclosed issues, such as legal history or undocumented employees, can erode trust and derail deals. Transparency is critical, from the outset.
- Foreign Investment and On-Shoring -- Andrew Tomat, Managing Director of Four Pillars, Inc., stated that European buyers are increasingly looking to invest in U.S.-based manufacturing to mitigate risks and diversify supply chains.
- Getting to Know Continuation Vehicles – The event’s second panel examined how Continuation Vehicles allow GPs to transfer high-performing assets from older funds to newly created ones, providing liquidity to LPs while enabling further growth. As Tom Marking, Director, Private Capital, Advisory at William Blair, noted: "These deals can be very accretive to the GP... providing an option for LPs to take liquidity or roll over."
- Legal and Regulatory Trends – Changes in regulations, such as increased focus on E-Verify compliance, are influencing diligence priorities. Robert Schroeder, Partner at BakerHostetler, noted that sellers should prepare for stricter scrutiny of employee documentation and regulatory compliance.
- Elongated Deal Timelines – In the “Accelerating Success: Proven Strategies to Shorten Deal Timelines” panel, speakers revealed that deal timelines have increased by 40%-80% since 2010, driven by heightened economic uncertainty, increased data availability, and more diligence on underperforming or B- and C-class assets. Lamar Standley, Managing Director at Highland Rim Capital, said, "Time is certainly in the top quartile of things that threaten deals."
- Alternative Financing Growth – In the "Trends in Financing You Should Know About" panel, Kenneth Saffold, Co-Founder and Managing Partner of o15 Capital Partners, noted that private capital markets, including SBIC-backed funds and non-bank lenders, continue to expand their presence in lower middle market transactions. "The private lending space now holds $3 trillion in deployable capital," he said.
- Tariffs and International Deals – The rising focus on tariffs could disrupt margins and valuations in cross-border M&A. Greg Wilder, Managing Member of Wilder Tax & Wealth Planning, LLC cautioned, "You can’t rely on the last two years’ EBITDA when tariffs are introduced."
About the Deals in the Dessert M&A Conference for midmarket investors, intermediaries, and advisors held January 21 - 22, 2025 Scottsdale Arizona
The AM&AA Winter Conference is an annual event delivering exceptional educational content and networking opportunities, providing sponsors, attendees and speakers valuable face-to-face time. The line-up of professionals attending includes executives from preeminent investment banks and intermediaries, leading private equity investors, senior and mezzanine lenders, CPAs, attorneys, business valuators, consultants, and other M&A advisors, representing countries from all over the world. Don’t miss the opportunity to network with hundreds of decision-makers with a combined $1 billion in transactional buying power over the next year.
What separates AM&AA conferences?
Our conferences carefully cultivate a well-balanced gathering of M&A professionals, all focused on deals and deal flow, providing you with more valuable networking, sharing and collaboration. We believe inviting high caliber industry experts, such as our session speakers, fosters an environment conducive to valuable knowledge exchanges and insightful thought leadership.
See you in Chicago IL for the AM&AA Summer July 15th 2025 Conference.
https://www.amaaconference.com/