U.S. Private Equity M&A Activity and 2025 Outlook

Exit Strategies Group sees 2024 as a turning point for U.S. acquisitions by private equity groups, for both new platform and strategic add-on acquisitions, and we’re optimistic that market conditions will continue to improve in 2025.

U.S. M&A activity, particularly in private equity (PE), rebounded strongly in 2024, with deal value rising 19.3% and deal count up 12.8%; fueled by stabilizing inflation, improved credit access, and a more favorable interest rate environment.

The hottest sectors were IT—especially software, where deal value surged 32.4%—and healthcare, which saw renewed interest despite ongoing regulatory hurdles. Software M&A thrived as PE firms chased high-margin, cash-flow-rich assets, while healthcare rebounded after years of regulatory stagnation.

Leveraged buyout (LBO) financing improved as banks re-entered the market, though loan volumes remain below pre-pandemic levels. PE dealmaking remains highly financing-driven, as it always has been!

For further information on M&A market conditions or to discuss a current need, contact Al Statz.