Q1’25 M&A Market Update: Why It’s a Strong Time to Sell
Q1'25 Market Update
Private equity firms are sitting on over $2 trillion in capital, and many are actively looking for deals in sectors not affected by tariffs or supply chain uncertainty. In this quick Q1’25 market update, Kirk Michie breaks down what founders need to know about today’s M&A environment—what’s moving, what’s not, and why now may be the right time to act.
Strong Demand, Limited Supply
Private equity firms currently have more than $2 trillion in dry powder. That’s capital sitting and waiting for the right opportunities. Strategic buyers also have cash on hand and are looking for deals that align with their growth strategies.
The challenge? There aren’t enough quality businesses on the market. If you own a company in healthcare, tech, software, or professional services—especially one that’s not exposed to supply chain disruptions or tariffs—buyers are paying attention. That imbalance between supply and demand has created a seller’s market.
Why Now?
If you’ve thought about selling, now may be a smart time to start the process. There’s urgency on the buy side. Waiting could mean entering the market after conditions shift due to interest rate changes, geopolitical uncertainty, or economic slowdowns.
In other words, market timing matters. And this market is currently tilted in your favor.
What If Your Business Has Supply Chain or Tariff Exposure?
Deals involving companies with supply chain challenges or tariff exposure are struggling. Even if performance hasn’t dropped, uncertainty is scaring off buyers. If you’re in this group, the advice is simple: wait. Buyers want more clarity before they’re willing to pay a strong price. In the meantime, working on operational improvements and transparency can help position your business for a better outcome later.
