The first half of 2025 marked a turning point for U.S. micro middle market M&A.
As dealmakers, business owners, and investors adapt to shifting market conditions, understanding where the momentum lies has never been more critical.
Houlihan Capital’s latest Micro Middle Market M&A Report analyzes the forces influencing deal activity, valuation trends, and lending dynamics across core sectors. Drawing on market data and insights from private equity professionals, the report offers a practical look at what’s driving transactions in today’s selective environment.
Highlights from the Report
- The impact of interest rate movements and lending conditions on leverage and capital structures
- Which industries continue to command premium valuations
- How private equity executives view competition and deal flow in the current landscape
- What business owners should consider as they plan for a sale, recapitalization, or growth transaction
Despite extended diligence timelines and tighter financing, disciplined buyers and well-prepared sellers are still achieving strong outcomes. Preparation, clarity, and experienced advisory support remain key differentiators in an increasingly competitive market.
Why It Matters
The micro middle market continues to offer opportunity - but success depends on anticipating where capital is flowing and how valuation expectations are evolving. This report provides a data-driven perspective to help business owners and their advisors make informed, confident decisions heading into the second half of 2025.
Learn More
Houlihan Capital advises founder and family-owned businesses on sell-side transactions and strategic growth initiatives.
Our investment banking team combines deep industry expertise with hands-on execution to help clients maximize value and move forward with confidence.
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Vice President (312) 450-8634 |
