Citizens M&A Outlook: Dealmaker Sentiment High

Recently, the Shippers Coalition has made a call for a labor agreement to prevent a potential second port strike. This move comes against the backdrop of increasing tensions in the labor sector, highlighting the need for a resolution to avoid disruption to port activities.

In other news, Citizens’ 2025 Mergers & Acquisitions Outlook has revealed that dealmaker sentiment is at a five-year high. A survey of 400 leaders at middle-market companies and private equity firms found that more than half believe the M&A environment is currently strong. Factors such as economic growth and easing inflation are driving middle-market businesses to pursue M&A opportunities in 2025.

The survey also indicated that expectations for valuations are positive, especially among private equity firms and larger middle-market businesses. The majority of respondents anticipate stable or higher valuations in the coming year, signaling a favorable climate for dealmaking.

According to Jason Wallace, head of Citizens M&A Advisory, companies and sponsors are entering 2025 with ambitious plans, reflecting a shift towards growth-oriented strategies. Private equity firms, in particular, are optimistic about the M&A landscape, with an increased belief in deal flow growth and strong market conditions.

The report also highlights a growing openness to partial sales among middle-market companies, as well as a heightened interest in artificial intelligence as a driver of dealmaking activity. Additionally, international deals remain a point of interest for both buyers and sellers, with a significant percentage indicating a willingness to consider opportunities outside the U.S.

Overall, the 2025 M&A Outlook paints a positive picture for the dealmaking environment, with a high level of interest and enthusiasm among corporates and sponsors. As companies look towards strategic growth initiatives, the stage is set for a robust year ahead in mergers and acquisitions.