Recently, REAG’s Founding Partner, Scott Mashuda, presented “The Current M&A Market: 2024 Review & 2025 Look Ahead” for EPI’s Webinar Series: M&A Market Pulse 2025. Supported by a data-driven analysis of 2024’s market fundamentals and insights from leading sources, REAG’s market outlook highlighted several key trends shaping dealmaking in 2025.
Watch the Full Presentation
Key Takeaways:
- Strategic buyers will drive early 2025 activity, with private equity becoming more active in the second half
- Market shows balanced buyer-seller dynamics with stable valuations expected
- $2 trillion in private equity dry powder poised for deployment
- Cross-border activity expected to increase, particularly in manufacturing
- Healthcare, IT, and blue-collar services remain attractive sectors
Shifting Market Dynamics: Strategic to Private Equity The presentation highlighted a clear transition expected in 2025, with strategic acquirers driving early-year activity before private equity becomes the dominant force in the second half. This evolution marks a significant shift in both deal drivers and structure – moving from add-on acquisitions toward larger platform strategies, fueled by an estimated $2 trillion in private equity dry powder awaiting deployment.
Deal Activity & Valuations Deal momentum is building steadily, with early 2025 showing increased activity compared to Q4 2024. While interest rate stabilization continues, REAG’s analysis suggests that robust M&A activity isn’t contingent on additional rate cuts. Instead, market fundamentals and private equity investment cycles are emerging as primary drivers of deal flow.
Industry Focus Several sectors are positioned for particularly strong activity:
- Manufacturing and industrials, driven by international acquirers seeking U.S. footholds
- Blue-collar residential, commercial, and industrial services, continuing to attract private equity interest
- Healthcare and IT maintaining their traditional appeal in the M&A market
Cross-Border Dynamics The analysis points to increased international M&A activity as foreign companies adapt to the post-election environment and seek to establish or expand their U.S. presence. This trend is expected to be particularly pronounced in the manufacturing sector.
Looking Forward The Lower Middle Market (LMM) appears well-positioned for 2025, with balanced market conditions between buyers and sellers creating an environment conducive to deal-making. As the private equity investment cycle, which has been elongated in recent years, begins to drive increased sell-side activity in the latter half of 2025, the market could see a significant uptick in both deal volume and size.
Questions About Market Dynamics?
REAG’s investment banking team stands ready with the expertise, relationships, and proven process to help you capitalize on this unique market opportunity.
As a three-time Title Partner of the Exit Planning Summit, REAG remains committed to empowering the CEPA community with innovative tools, resources, and collaborative opportunities that enhance advisor capabilities. Through initiatives like the CEPA Portal and thought leadership experiences, REAG helps transform how advisors deliver value to business owners during critical transition periods.
Contact us today to begin a confidential discussion about maximizing your company’s value in today’s seller’s market.
About Scott Mashuda
Scott Mashuda is a founding partner of REAG, an award-winning lower-middle market investment bank with over two decades of experience in mergers & acquisitions and business valuation. Scott has guided both public and private companies through sales, purchases, valuations, dissolutions, and restructurings.
As a key leader at REAG, Scott drives the firm’s growth and strategic vision, leveraging his expertise in the sale, acquisition, valuation, dissolution, and consolidation of closely held companies. His leadership has been instrumental in establishing REAG as a respected authority in the lower-middle market.
Scott’s industry influence extends beyond REAG. He served on the Board of Governors of the M&A Source, where he has held various leadership roles including chair of the marketing committee, chair of the sponsorship committee, and chair of the conference committee. In 2023, Scott was appointed Chair of M&A Source, a testament to his contributions to the field.
Recognized for his excellence, Scott was named one of the 2013 “40 Under 40” top M&A service providers by The M&A Advisor. He remains an active member of the Cleveland Chapter of the Association for Corporate Growth, further contributing to the M&A community.
About REAG
REAG specializes in Mergers and Acquisitions and Private Capital Market Advisory Services in the Lower Middle Market with a commitment to meaningful engagement and long-term collaboration. For over two decades, REAG has helped founder/owners, leadership teams, private equity groups, and family offices optimize cash flow and overcome challenges to grow, maximize the value of their businesses, and successfully transfer ownership.
About Exit Planning Institute
Pioneering an industry since 2005, The Exit Planning Institute™ (EPI™) serves an elite, high-caliber network of professional advisors fully committed to serving the needs of business owners from diverse areas of professional specialty. This includes attorneys, CPAs and accountants, business brokers, financial planners, valuation advisors, investment bankers, estate planners, commercial lenders, consultants, wealth managers, insurance professionals, Mergers & Acquisition advisors, and other professional advisors.
