IMAP closes 52 M&A transactions in Q1 2025

The momentum in middle-market M&A that gained traction throughout 2024 carried into 2025, with IMAP dealmakers closing 52 transactions globally, totaling over $4 billion in Q1. Improving economic conditions, declining interest rates, and renewed market confidence contributed to a favorable dealmaking environment in the first quarter. Moreover, the mid-market segment continues to demonstrate resilience and strategic importance in an evolving economic landscape. Cross-border activity remained strong, accounting for nearly half of IMAP transactions in Q1, as dealmakers leveraged IMAP’s global reach to help clients capitalize on international opportunities—particularly across Europe. From a sector perspective, Services and Industrials were the most active segments, reflecting sustained investor interest in these key industries.

Looking ahead, we remain optimistic about continued deal flow as market fundamentals support ongoing M&A activity. While uncertainty surrounding U.S. economic and trade policy continues to build, the fundamental drivers of middle-market M&A remain intact. Founder-led businesses are coming to market as entrepreneurs pursue succession planning and generational transitions. At the same time, Private Equity firms are under increasing pressure to exit long-held portfolio companies, further contributing to deal supply. On the demand side, both financial and strategic investors are well-capitalized, with significant dry powder accumulated over the past several years. This liquidity, combined with a selective investment approach, continues to drive strong competition for high-quality assets. Businesses with strong margins and resilient performance are expected to attract the most interest, commanding premium valuations in the current environment.

Jurgis V. Oniunas, IMAP Chairman commented: "The global economic and geopolitical landscape remains complex and ever-evolving. Trump-led tariffs are set to massively disrupt trade and supply chains, creating additional challenges for business planning and valuations—both critical components in the M&A process. Some countries, like Canada and China, are expected to be among the most affected, while others, such as Germany, may see economic stimulus from increased public investment. Sector impacts will also vary—Automotive and Consumer industries are likely to face the greatest pressure, whereas Technology and Healthcare are expected to stay afloat and maybe even thrive, driven by ongoing digital transformation and innovation. Despite the challenges, IMAP partners are reporting strong and growing deal pipelines, underscoring continued confidence in the middle-market M&A environment. While further developments could disrupt global markets and dealmaking, IMAP advisors remain committed to guiding our clients through this historic time."

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