Clint Bundy, Managing Director, kicks off season two of Bundy Group Insights by diving into the current economic and mergers & acquisitions (M&A) landscape, offering a thorough analysis of 2024 and expectations for 2025. Joined by Alex Chausovsky, Director of Analytics and Consulting, and Stewart Carlin, Managing Director, the conversation provides expert insights into economic trends and their impact on the M&A market.

Alex highlights key economic trends from 2024, focusing on the resilience of the U.S. consumer and evolving labor market dynamics, as well as their impact on companies across numerous industries. Stewart provides a comprehensive analysis of M&A activity over the past decade, covering the exuberance of 2021, the market's adjustment in 2022-2023, and signs of measured recovery in 2024. Together, all three advisors examine how these trends influence privately-held companies and their strategies for success in the year ahead.

Key Takeaways:

• Economic Resilience in 2024: GDP growth of 2.5-3.0%, robust consumer spending, and labor market stability balanced by recent challenges in industrial and manufacturing sectors.
• Strategic Insights for 2025: Business leaders and executives are encouraged to incorporate macro-level risks, such as policy changes and inflation, into their scenario planning, while also focusing on operational priorities like cost management and employee retention.
• M&A Market Outlook: While corporate buyers continue to drive activity, financial sponsors are regaining their appetite for acquisitions and divesting of portfolio companies, setting the stage for a growth in M&A activity in 2025.

Industry-Specific Trends:

• Healthcare: Strong interest in behavioral health and aesthetics continues to grow, fueled by the consolidation-oriented nature of these markets.
• Technology: Automation and controls see significant growth, driven by increasing demand for efficiency and productivity solutions.
• Business Services: Opportunities are expanding in fire safety, AI-related infrastructure, and home services.

Bundy Group Update

Active Client Pipeline:

Heading into 2025, Bundy Group is engaged in business sale opportunities across our three core verticals. In addition, we have specific subsectors we are highly active in today. Based on the firm’s pipeline, as well as the market tailwinds, we anticipate a strong company performance in 2025.

Sector: Technology-Enabled Services

• Subsectors
  • Automation and control system integration
  • Technology Services

Sector: Healthcare Services

• Subsectors
  • Dermatology & Aesthetics
  • Behavioral Healthcare
  • Healthcare Technology

Sector: Business Services

• Subsectors:
  • Fire, Security & Safety
  • Value-Added Engineering Services

Market Dynamics:

• Buyers are eager for opportunities but are highly diligent in their assessments and decision-making.
• Competitive processes are critical to achieving top value for sellers.

Bundy Group’s 2025 Initiatives:

• Expanding the team with new talent on both the origination and client services fronts.
• Participating in numerous industry conferences—watch for updates on LinkedIn and email announcements.
• Welcoming conversations with business owners to share insights, discuss business sales, or explore capital raise opportunities!

Learn more about the Bundy Group by visiting bundygroup.com.