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Mid-Market M&A Trends Report 2025

Transaction Dynamics, Valuation Trends, and Deal Structures

Comprehensive analysis of mid-market M&A activity across sectors, geographies, and deal structures. This report examines transaction volume trends, valuation multiples, financing dynamics, and emerging deal structures reshaping the $50M-$500M enterprise value segment. Essential reading for corporate development executives, investors, and advisors navigating today's M&A landscape.

Mar 1, 202528 min3.8 MBPreview 12 pages
BAM Monogram
Market Analysis

Mid-Market M&A Trends Report 2025

Transaction Dynamics, Valuation Trends, and Deal Structures

Mar 1, 2025

Executive Summary

Mid-market deal volume remained resilient despite macro headwinds, with strategic buyers outpacing financial sponsors by 15% in transaction count while creative structures bridge the valuation gap.

Key Findings

1Deal volume in $50M-$500M segment declined 8% YoY but remained 12% above pre-pandemic levels, demonstrating mid-market resilience.
2Valuation multiples compressed 15-20% from 2021 peaks; median EBITDA multiple of 6.2x represents historical mean reversion.
3Earnouts featured in 42% of transactions (up from 28% in 2021), with seller financing in 18% of deals addressing lending constraints.
4Technology/software and healthcare services drove 48% of transaction value; manufacturing and distribution faced valuation pressure.
5Average time-to-close extended to 7.2 months (from 5.8 months in 2021) due to enhanced due diligence and financing complexity.

Table of Contents

Executive SummaryPage 3
Transaction Volume & Activity TrendsPage 7
Valuation Analysis by SectorPage 15
Deal Structures & FinancingPage 23
Buyer Dynamics: Strategic vs. FinancialPage 31
Due Diligence & Transaction ProcessPage 39
2025 Outlook & PredictionsPage 47
Appendix: Transaction DatabasePage 52

Methodology

Analysis of 850+ mid-market transactions closed between January 2023 and December 2024, sourced from proprietary BAM deal database, public filings, PitchBook, and CapIQ. Supplemented with interviews of 65 corporate development executives and investment bankers.

Data Sources

BAM Transaction Database, PitchBook, S&P CapIQ, SEC filings, industry association reports, primary interviews.

About the Author

李(L

李东红 (Donghong Li)

Founder & CEO

BAM's research collective synthesises market intelligence, governance benchmarks, and transaction casework to inform institutional decision makers.

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