Tips for having a successful year in M&A
2025 has presented a unique opportunity for businesses considering mergers and acquisitions, with a surge in activity noted by industry experts. Steve Prendeville, the founder and director of Forte Asset Solutions, describes this year as particularly significant in his 21 years of operating in the financial advice sector. He attributes the uptick in M&A activity to factors such as years of artificial suppression on the marketplace, impacting businesses’ ability to maximize valuations.
Prendeville notes that many individuals had to delay retirement plans, recover from revenue loss, particularly grandfathered revenue, and focus on improving their businesses in the wake of various challenges. This led to a situation where businesses were unable to achieve their full potential in terms of valuations. However, as the pressures ease and businesses adapt to new norms post-Hayne report and COVID-19, a resurgence in M&A activities is becoming evident. Prendeville anticipates a robust year ahead, building on the momentum from recent developments in the market.
The current climate is characterized by increased supply and demand dynamics, setting the stage for a standout year in mergers and acquisitions. Prendeville highlights that despite the challenges faced by businesses in recent years, there is now a growing interest in M&A opportunities. Demand is surging, not just from international private equity firms but also from local businesses seeking partnerships through mergers or office-sharing arrangements to fuel their growth.
The momentum in M&A activities is expected to continue, driven by a combination of pent-up demand, the need for business expansion, and strategic collaborations. As the industry gears up for what promises to be an exceptional year, advisors and businesses are urged to prepare themselves to capitalize on the prevailing conditions. Strategic planning, valuation assessments, and thorough due diligence are crucial steps that businesses can take to position themselves favorably in the M&A landscape.
Prendeville’s insights shed light on the evolving dynamics of the M&A landscape, emphasizing the importance of being proactive and strategic in navigating the opportunities that lie ahead. With a resurgence in activity and a favorable market environment, businesses have the chance to secure optimal valuations and growth opportunities through well-executed M&A strategies. As the year unfolds, businesses that are prepared and agile stand to benefit significantly from the positive outlook in the mergers and acquisitions space.
