2025: A Year of Relationship Building
M&A in 2025 was vastly different at the two ends of the deal size spectrum: mega deals drove the bulge bracket to a record year while the middle market shuffled along and didn’t really get going until late in the year.
Why such a big difference?
The bulge bracket benefited from lower interest rates, easing US regulatory environment, and a sprint to acquire AI tools and platforms. Meanwhile, the middle market struggles were attributed primarily to the large impact and uncertainty of tariffs. These impacts made forecasting extremely difficult for smaller companies. By the end of the year, the middle market was finding its way again as investors and businesses began to accept uncertainty and were getting on with completing deals they had been looking at throughout the year.
In a year defined by ongoing market normalization and selective buyer behavior, FOCUS delivered consistent engagement with buyers, disciplined execution on behalf of sellers, and strong transaction momentum across industries and geographies.
While uncertainty persisted throughout most of 2025, our structured, process driven approach enabled clients to navigate complexity with confidence. Deals stayed alive and buyers remained engaged. FOCUS closed transactions across multiple sectors and geographies while building a robust pipeline poised for an exciting and active 2026.
Navigating a Dynamic Market with Discipline and Confidence
We believe increased “certainty to close” starts well before a business goes to market and that discipline served us well in 2025. Throughout the year our teams doubled down on upfront preparation and disciplined process management such as Quality of Earnings (QofE’s), contract reviews, and thorough market sector analysis ensured that clients were positioned for a successful outcome.
Key elements of our approach include:
- Upfront work to clarify value drivers, normalize financials, and anticipate diligence questions before buyers engaged.
- Highly detailed, well-structured letters of intent (LOIs), reducing ambiguity, minimizing retrades, and keeping transactions on track post-LOI.
- Active process management to maintain buyer momentum during periods of slower decision-making and extended approval cycles.
This discipline proved critical in a market where buyers remained active and increasingly deliberate. Our ability to prepare clients thoroughly and manage complexity helped transactions progress.
Market Normalization, Active Buyers, and the Value of Relationships
As 2025 progressed, the M&A market continued to normalize. Valuation expectations adjusted, underwriting remained conservative, and while some transactions took longer to close, capital was still available and strategic intent remained strong.
Our longstanding relationships with private equity groups, family offices, and strategic acquirers played a meaningful role. Our regular dialogue and engagement with active buyers allowed us to identify groups and match sellers with buyers aligned on structure and risk tolerance to keep processes moving.
The relationships we have built and nurtured over decades continued to differentiate FOCUS in a market where access and credibility matter more than ever.
Sector Specialization Matters More Than Ever
One of the clearest takeaways from 2025 was the increasing importance of sector specialization. FOCUS was a leader in reorganizing our bankers into teams a decade ago in order to take advantage of deep industry expertise.
Buyers gravitate toward looking at opportunities from advisors who understood not just financial performance, but the operational realities, regulatory considerations, and growth dynamics of their industries. Our industry focused teams bring that expertise to every engagement helping clients articulate value clearly.
This specialization contributed to higher quality buyer interest, fewer process disruptions, and stronger outcomes for our clients. Our growing European footprint, with seamless collaboration between U.S. and European teams, enabled clients to access a broader buyer universe and capitalize on international demand for high-quality middle market assets.
Capital Markets Momentum
In addition to high sell side activity, 2025 saw strong interest in capital raises and structured financing solutions. We engaged with a wide range of investors in private credit funds, family offices, and institutional lenders who remain interested in supporting growth initiatives, recapitalizations, and shareholder liquidity events.
This activity underscores the depth of capital seeking well-positioned middle market opportunities.
Investing in the Firm: Building for the Long Term
2025 was not only a strong year for client outcomes…it was also a year of intentional internal investment.
FOCUS continues to invest in marketing, thought leadership, and business development to expand reach, strengthen brand visibility, and support banker-led origination efforts across industries.
We deepened and expanded partnerships designed to increase deal flow and enhance market intelligence.
Our new London office marks a significant milestone reinforcing our commitment to operate as a global advisory firm with cross-border collaboration and client service.
Lastly, we welcomed new bankers with deep sector expertise and proven transaction experience. Our investment in people, combined with collaborative deal teams, creates a higher degree of execution certainty for clients. Experience matters, particularly in complex or evolving markets.
Looking Ahead to 2026: Cautious, but Optimistic
As we look to 2026, we are optimistic. Several tailwinds are expected to shape the year ahead. We believe decreasing interest rates will improve financing conditions. We expect that the current administration will provide greater clarity around trade and tariff policies, and the market will become more comfortable with the overall approach.
We also anticipate an increased supply of quality assets coming to market matched with significant levels of dry powder across private equity and private credit markets seeking deployment.
With a strong pipeline already in motion, FOCUS enters 2026 well positioned to deliver continued momentum and successful outcomes.
As always, we remain committed to guiding founders and owners through pivotal transactions with clarity, confidence, and certainty.
The following transactions prove this. Through disciplined execution and sector specialization, our teams successfully advised clients across multiple industries.
To read our full 2025 Year in Review, please click here.
