Global M&A Activity Surging in 2025: Capstone & IMAP Report
Capstone Partners and IMAP release a report projecting a robust uptrend in global M&A activity for 2025, driven by economic improvements and private equity interest.
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BOSTON, Feb. 6, 2025 - Capstone Partners, in partnership with IMAP, has published its much-anticipated Trends in Global M&A Survey Report, revealing optimistic forecasts for 2025's M&A landscape. Drawing insights from over 100 M&A advisors across the globe, the findings offer a comprehensive view on how the market is evolving, presenting a hopeful scenario for increased deal flow and valuations in the upcoming year.
According to the survey, the economic outlook among advisors has significantly improved. With central banks worldwide moderating interest rates, M&A activities are expected to benefit from this conducive financial environment. Remarkably, only 38% of M&A advisors foresee a recession being likely in 2025, highlighting growing confidence in economic resilience.
The survey points to an anticipated surge in M&A transactions as early as 2025, with 79% of M&A advisors predicting an increase in deal flow. This is a promising rebound from the estimated trough of 2024, with projections marking a substantial rise in market activities by as much as 28% year-over-year. Such optimism is underpinned by buoyant private equity investments, with over half of the surveyed bankers expecting sponsor dealmaking to climb.
Moreover, as global buyers become more discerning, acquisition targets are being chosen based on financial robustness, particularly focusing on recurring revenue streams. This trend was highlighted by 69% of advisors who emphasized the importance of this factor in 2024, marking a 6% increase from the previous year.
Valuation trends also appear promising, with 46% of advisors anticipating moderate increases in M&A purchase multiples in 2025. Financial Technology & Services, along with Healthcare, are pinpointed as sectors expected to achieve the highest M&A EBITDA multiples, reflecting their resilient industry positions.
Finally, while the drive behind M&A engagements in 2024 was primarily due to retirement-driven sales, the report predicts industry consolidation to be the key motivator for 2025. This aligns with an expected swell in M&A activities, as business owners leverage consolidation opportunities. Capstone Partners and IMAP's detailed analysis offers critical insights for middle market business owners contemplating their next strategic moves in the ever-fluid M&A landscape.
