The M&A landscape in 2025 continues to show divergent trends between large-cap and mid-market activity. While dollar volumes have increased materially thanks to headline-grabbing transactions worth $10+ billion, deal counts remain down 10-20%, and the mid-market has not seen the same boost.
Economic policy is stabilizing, with reduced uncertainty and supportive tax and deregulation tailwinds, though tariff volatility persists. Financing remains robust as private debt and secondary capital strategies help firms meet their liquidity needs, especially in the mid-market where traditional exits have proven difficult.
Non-discretionary services continue to drive mid-market deals, while technology, financial services, and healthcare headline large-cap activity. Recent notable transactions include Advent’s acquisition of LayerZero Power Systems (industrial technology), TopBuild’s $810M purchase of Progressive Roofing (commercial services), and Vomela Companies’ acquisition of PFL Tech (marketing automation software).
Exit activity is expected to build slowly but steadily alongside continued M&A momentum into 2026—should interest rate relief materialize as expected.
