Don’t Waste It—The M&A Slowdown Is Your Opportunity

It’s Time to Get Your Business “House” in Order

As the mergers and acquisitions (M&A) market slows to levels not seen since the Great Recession, many business owners are left wondering whether to pause or press forward. 

The answer? 

Use this time wisely. 

In periods of economic and policy-driven uncertainty—like what we’re experiencing now—the smartest move you can make is to improve your business. Because when the market rebounds, the quality of your business will be your greatest competitive advantage.

The Current Climate: A Cooling M&A Market

According to Dealogic data reported by Reuters, global M&A activity has plummeted to its lowest point in more than 20 years, with April 2025 logging just 2,330 announced deals. That’s 34% below the historical monthly average. In the U.S.—the world’s largest M&A market—only 555 deals were inked, the fewest in any month since May 2009.

This downturn is largely attributed to policy-driven uncertainty. On April 2, President Trump launched a sweeping tariff campaign affecting nearly all U.S. imports, rattling stock markets and stalling business confidence. Mid-sized companies, in particular, are bracing for supply chain disruptions and rising costs. The result? Companies and their advisors are hitting pause on acquisitions and IPOs until there’s more clarity.

But Here’s the Upside

While the deal pipeline may be drying up now, history has shown that strong businesses are the ones best positioned to capitalize when conditions improve. 

As we’ve said before:

You can’t control the economy. You can’t control a pandemic. You can’t control whether AI will transform your industry. What you can control is how prepared you are for uncertainty—and that starts with diligent planning, careful spending, and diversification of your assets.

What Buyers Will Be Looking For When They Return

Even in a quiet deal market, the fundamentals remain the same: Buyers are always attracted to high-quality, well-run businesses. If you’re considering an exit in the next 2–5 years, now is the time to take stock and then professionalize and fine-tune your operations.

Here are the top things you can do now to prepare your business for a more favorable M&A market:

Get Your Financial House in Order

• Clean, accurate, and up-to-date financial statements are non-negotiable.
• Build a strong balance sheet: Reduce unnecessary debt, maintain healthy cash reserves.
• Don’t minimize profits to save on taxes.
• Separate personal and business finances completely.

Systematize and Document

• Streamline operations with clear standard operating procedures (SOPs).
• Ensure key processes are not dependent on any one person—especially you.
• Invest in software and systems that increase transparency and efficiency.

Strengthen Customer and Supplier Relationships

• Diversify your client base—heavy concentration is a red flag.
• Review contracts and ensure favorable terms are in place and well documented.

Build a Strong Management Team

• Cross-train and retain top talent.
• Establish a clear chain of command and empower leaders.
• Make sure your business can be run without you.

Mitigate Risk and Improve Compliance

• Update legal and regulatory documentation.
• Conduct a risk assessment across all areas: legal, cybersecurity, operational, etc.
• Revisit Your Personal Financial and Estate Plans
• Diversify your personal assets—don’t rely solely on your business for retirement.

• Determine how much you will need to net after taxes from your business sale.
• Revisit your contingency and estate plans now to be sure there is a clear path for business and family continuity in case you are disabled or pass away unexpectedly. 

And last but certainly not least, if you have not started already, create a task force within your business to determine how to incorporate new technologies, including artificial intelligence (AI) into your product and service offerings and how to use it to improve and optimize your operations. We will cover this topic in greater detail in future articles. Businesses that incorporate AI now will increase their value and have a distinct advantage over their slower competitors when it’s time to go to market!

The Bottom Line

Running lean isn’t about cutting corners—it’s about keeping your business agile and your options open. A well-prepared business will always command higher multiples and attract better buyers, regardless of the broader economic landscape.

The deal market will recover. When it does, make sure you and your business are ready. Start planning your exit today.