Always Be Selling (or at least thinking about it)!

Written by James Sanders

If you haven’t noticed, there are a lot of deals being announced or closed right now.  Why is M&A so active?  Below are a few of the key reasons: 

Strategic Priorities & Growth Pressures – Many companies are pursuing acquisitions to accelerate growth, enter new markets, or build capabilities (especially around technology like AI and digital transformation).

• Strong Capital and Liquidity – Private equity firms hold record amounts of “dry powder” (undeployed capital) and are under pressure to invest it, driving buyouts and takeovers. Corporations and financial sponsors have strong balance sheets and cash reserves, which facilitates deal financing.
• Lower Interest Costs (or Expectations of Lower Rates) – While recent rate volatility has been a factor, stabilizing or anticipated cuts in interest rates reduce borrowing costs, making leveraged acquisitions more attractive.
• Elevated Valuations and Stock Markets – Stock indices remain strong in many markets, which can give acquirers “currency” to pay with stock and keeps confidence high.
• Favorable Regulatory Environment – In the U.S. especially, a lighter regulatory and antitrust posture compared with previous years is encouraging larger and more strategic deals.
• Pent-Up Demand After Past Slowdowns – Deal activity dipped in prior years due to macroeconomic uncertainty, geopolitical headwinds, and higher rates. This created pent-up demand that’s now being unleashed as conditions normalize.
• Continued Optimism Into 2026 – Investment banks report strong deal pipelines and expect activity to remain strong or grow further in 2026, suggesting the current “heat” isn’t just a short blip.

So, how do you get into this M&A trend?  On the sell side, it’s important that you are always prepping your business for sale, regardless of whether you are ready to sell or not.  Over the next few weeks, we are going to discuss this topic and review key questions such as the following: 

• How do you prepare your business for sale?
• What are the types of ways you can exit?
• What can you expect in a sale process?