Advisory Firm Performance and Planning
Firmex Focus is part of our quarterly deal trends reports serving middle-market advisors. M&A practitioners from across North America and Europe have contributed their perspectives and commentary.
Firmex Focus Q2 2025 Highlights
- A solid 2024: 44% of middle market advisory firms grew revenue in 2024, and only 23% declined. 39% saw profits rise.
- High hopes for 2025: Three-quarters of firms expect to increase their top line this year.
- Strength in Europe: Despite a sluggish economy, European firms were more likely to post increases in revenue and profits in 2024 than those in North America.
- Managing expenses: A majority (63%) of advisory firms maintained consistent expense levels last year, though a rising number (45%) expect expenses to increase this year.
- Growing client activity: Most firms said that interest from buyers and sellers is helping improve their performance.
- A challenging world: Economic uncertainty was the biggest drag on performance, followed by taxes, regulation, and politics (38%).
- Self-help: The top source of growth was firms’ business development activities, especially person-to-person methods like networking and seeking referrals.
- A sharp pencil: To improve performance this year, firms are looking to tighten their execution and trying to focus on the most promising opportunities.