Generational Group, a leading investment banking firm for privately held businesses, is proud to announce a record-breaking start to 2025, with 20 successful deal closings in January. This milestone not only underscores the firm’s unwavering commitment to delivering exceptional results for its clients but also signals the onset of an anticipated M&A wave in 2025.

This surge in activity is driven by several key market factors, including increased certainty following the inauguration of the new administration, anticipated bank deregulation, an improving economy, and a series of presidential executive orders stimulating buyer optimism across multiple sectors. These elements have created a favorable environment for both buyers and sellers, fueling what many experts believe will be a record-setting year for M&A.

Five Key Factors Driving the 2025 M&A Wave:

Bank Deregulation & Growth

Loosening regulations are facilitating more deal closings, while increased bank lending is driving economic growth and job creation. The Generational Buyer Marketing and Intelligence group has identified a key regulatory shift: a likely increase in the SBA lending limit from $5 million to $10 million per transaction.

Favorable Interest Rate Adjustments

The Federal Reserve's rate, currently at 4.75–5%, is projected to drop to 4.1% by year-end, boosting acquisition activity among strategic buyers and private equity firms.

Economic Tailwinds

The U.S. GDP has steadily climbed since 2020, with Q3 of 2024 delivering the fastest growth among G7 economies. New pro-business policies from the new administration are expected to add further momentum.

Record Capital Levels

With over $1.2 trillion in "dry powder" available as of November 2024, private equity firms are primed for a surge in investments following a cautious 2024.

Time-Sensitive Opportunity

Demographic trends are accelerating M&A activity as Baby Boomers seek liquidity events. In 2024, Boomers owned 51% of U.S. privately held businesses, valued at $10 trillion.

“We’re seeing unprecedented momentum in the M&A space as we kick off 2025,” said Brenen Hofstadter, Chief M&A Officer at Generational Group. “The added market certainty and economic optimism are buoying valuations and driving deal activity across multiple sectors. The long-predicted M&A Super Cycle has arrived.”

Ryan Binkley, President and CEO of Generational Group, added, “Our record-breaking January is a testament to the trust our clients place in us and the dedication of our team. As market conditions continue to improve, we anticipate sustained growth with the investment community throughout the year, making this an opportune time for business owners considering a sale.”

Generational Group’s strong start to 2025 reflects its strategic approach and expertise in navigating dynamic market conditions. The firm remains committed to helping business owners maximize value and achieve their financial goals in this evolving M&A landscape.

These principles remain the foundation of Generational’s success. In 2024, the firm achieved a significant milestone by surpassing 1,600 completed transactions. That same year, The M&A Advisor honored Generational as "Investment Banking Firm of the Year"—its highest distinction. These achievements underscore the firm’s leadership in the M&A sector and its ability to consistently deliver outstanding results for clients.

Generational Group’s leadership is also recognized in the annual industry rankings compiled by LSEG (formerly Refinitiv). In the past four years, Generational has been ranked 1^st or 2^nd in most completed transactions across all categories, from $25 million up to $1 billion in transaction value.

About Generational Group

Generational Group, headquartered in Dallas, Texas, is a leading, award-winning full-service M&A advisory firm. With over 300 professionals across 15 offices in North America, the company helps business owners unlock the full value of their businesses through a comprehensive suite of advisory services. These include strategic growth consulting, exit planning education, business valuation, value enhancement strategies, M&A advisory, digital solutions, and wealth management.

For more information, visit generational.com.

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