2025 Year in Review & 2026 Outlook

In this episode of Bundy Group Insights, Clint Bundy and Stewart Carlin reflect on a pivotal year in the M&A market, reviewing key developments from 2025 and discussing what business owners should be thinking about as they head into 2026.

The conversation begins with a discussion of the broader M&A environment. While headline attention focused on large, marquee transactions, 2025 was notable for the breadth of global deal activity, with more than 50,000 M&A transactions completed worldwide—a first-time milestone—and approximately 19,503 transactions in North America, the third-highest annual total on record. These figures underscore that market strength in 2025 was driven not just by deal size, but by sustained transaction volume across the middle market.

Clint and Stewart then review Bundy Group's performance in 2025. The firm closed eight transactions totaling approximately $440 million in aggregate value and delivered nearly 50% average premiums on Bundy Group-led sell-side engagements. These outcomes were achieved in a selective, diligence-heavy market through disciplined preparation, competitive processes, and deep sector specialization. Several client engagements are highlighted to illustrate how execution quality and positioning continued to drive strong results.

The episode concludes with a look ahead to 2026, including a sector-by-sector discussion across business and industrial services, technology-enabled services, and healthcare. Alex Chausovsky, President and CEO of 3DM Consulting, joins the conversation to provide additional economic and market context, offering perspective on geopolitics, policy dynamics, AI adoption, and why complexity—rather than outright uncertainty—is likely to define the operating and deal-making environment in the year ahead.

Key Takeaways

1. 2025 was a historic year for M&A activity, driven by record global transaction volume rather than just headline mega-deals.
2. Middle-market M&A remained active despite increased buyer selectivity and higher diligence standards.
3. Bundy Group-led sell-side engagements delivered nearly 50% average premiums, reflecting disciplined preparation, competitive processes, and execution quality.
   Strategic and financial sponsor buyer confidence remains strong, supported by available capital and continued appetite for high-quality assets.
4. In 2025, Bundy Group closed transactions with a diverse buyer universe, including financial sponsors, sponsor-backed buyers, and strategic acquirers—including international conglomerates such as Hitachi and VINCI Energies.
5. Companies that have prepared for a sale and built the right fundamentals—clear positioning, scalability, and resilient performance—continue to have the ability to achieve premium outcomes in a competitive sale process.

Key Insights

• More than 70% of M&A activity occurred in transactions under $250 million, reinforcing the continued strength of the middle market.
• Buyers remain disciplined and are willing to pay premium valuations for clear outperformers with strong fundamentals and compelling narratives.
• Competitive tension remains one of the most consistent drivers of higher valuations and better long-term strategic fit for sellers.
• Sector specialization is increasingly critical for advisors, particularly in areas such as power solutions, automation, and healthcare services.
• Business owners who plan early and build adaptable, resilient organizations are best positioned to achieve strong outcomes in a sale process.
  Owners must remain attentive to geopolitical and macroeconomic developments and understand how broader market dynamics can impact their businesses and exit options.

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