Fall 2025 M&A Update
Middle market M&A activity rebounded in the second quarter of 2025, although year-to-date activity remains depressed compared to prior-year levels. The ho-hum market likely reflects a confluence of factors: a backlog of exits among PE funds generally, tariff and macro uncertainty though tomorrow always is uncertain, and perhaps would-be sellers awaiting better valuations.
The availability of credit is not holding back PE-led M&A as private credit continues to see a surge of capital allocated to it that in turn has to be deployed. Also, the leverage loan/high yield bond markets are open.
Market activity also depends upon who is measuring it. We rely upon a combination of GF Data®, Cap IQ and Pitchbook. GF Data® chronicles the lower middle market. While we recognize it does not capture every transaction, we believe it provides a representative sample sufficient to offer broad commentary on the state of middle market PE activity given its focus on deals with total enterprise values between $10 million and $500 million submitted by approximately 350 U.S.-based private equity firms.
FEATURE ARTICLE
Rollover Equity in Private Equity Transactions
Also in This Issue
U.S. Deal Value & Volume
EBITDA Multiples
EBITDA Multiples by Buyer Type
U.S. Deal Volume by Industry
Debt Multiples
Number of Deals by Buyer Type