Market changes may impact dealmakers, warns expert in mergers and acquisitions

The economic landscape of 2025 is shaping up to be a mixed bag for dealmakers in the mid-market. With global uncertainty looming and political shifts happening, the future of mergers and acquisitions remains uncertain. Andy Hough, a partner at Pitcher Partners and the head of the Sydney M&A team, recently shed light on the prevailing sentiment in the industry by describing it as “cautiously optimistic.”

The notion of being “cautiously optimistic” may seem paradoxical, but it encapsulates the delicate balance that dealmakers are striving to maintain as they navigate the complex economic and political terrain. Hough emphasized that one’s perception of the outlook hinges on whether they view the glass as half full or half empty. Despite the challenges, there is a sense of hope that the worst is behind us, and better days lie ahead.

Reflecting on the recent past, Hough remarked on the subdued activity in deal making both in Australia and globally. A quiet period at the top end of the market tends to have a ripple effect throughout the entire industry, leading to a slowdown in overall activity. However, there is a glimmer of optimism on the horizon as dealmakers eagerly anticipate a turnaround from the sluggish pace of the previous years.

Several factors contribute to the cautious optimism among dealmakers, including interest rate cuts, the geopolitical upheavals following the election of US President Donald Trump, and the impending Australian election. These uncertainties have added layers of complexity to an already intricate landscape, prompting dealmakers to tread carefully and approach opportunities with a measure of prudence.

Drawing on his extensive experience spanning more than two decades in the M&A realm, Hough expressed a personal sense of optimism and decreased caution towards the market. While acknowledging the prevailing uncertainties, he remains hopeful that resilience and adaptability will guide dealmakers through the challenges that lie ahead.

As dealmakers brace themselves for the evolving market dynamics, they are acutely aware of the need to remain agile and responsive to changing conditions. The road ahead may be fraught with obstacles, but it also presents opportunities for those willing to take calculated risks and make strategic moves amidst uncertainty.

In conclusion, the outlook for dealmakers in the mid-market is a nuanced one, marked by cautious optimism and a readiness to navigate the twists and turns of a rapidly evolving landscape. While challenges abound, there is a sense of resilience and determination among dealmakers to weather the storm and emerge stronger on the other side. Only time will tell how these dynamics play out in the months and years to come.