Stabilizing the Market
Firmex Forecast is the second part of our reimagined deal trends reports serving middle-market M&A advisors. For this edition, global M&A practitioners have contributed their perspectives and commentary on the current state and possible future of the middle market.
Firmex Forecast Q2 2025 Highlights
- Deal volume is expected to rise: The Firmex Forecast predicted that M&A transactions would increase in the second quarter by 7% in North America and 16% in Europe.
- Advisor optimism is growing: More advisors now report above-average deal volume compared to the previous survey, and a significant 50% expect above-average volume in the next six months.
- Deal closing success rates are improving: A higher percentage of advisors are experiencing above-average success rates in closing deals, a notable increase from the end of 2024.
- Deal negotiation timelines remain extended: While fewer advisors report longer-than-usual negotiation times compared to the last survey, a majority still indicate that deals are taking longer to close.
- Valuations are stabilizing and increasing: The sentiment around deal valuations has shifted from predominantly below average to a more balanced outlook, with slightly more advisors now seeing above-average values.
- Buyer activity has normalized: While the surge in buyer activity that advisors predicted last year has yet to materialize, the number of buyers in the market is now seen as average.
- Seller activity has also moved towards average: Similar to buyer activity, the number of sellers in the market has decreased from above-average levels to a more typical range.