Adapting to Uncertainty

For much of the past two years, uncertainty has dominated discussions around capital allocation, acquisitions, and strategic growth. While uncertainty remains, businesses are increasingly demonstrating an ability to adapt and move forward rather than wait on the sidelines.

One of the most encouraging developments for the M&A market is the continued improvement in lending conditions. Senior debt pricing declined again during the first quarter, and we have now seen two consecutive quarters of meaningful increases in total debt-to-EBITDA multiples available for platform transactions. The last time both deal volume and total debt-to-EBITDA levels increased simultaneously was in Q4 2024.

These trends matter. Lower borrowing costs combined with greater lender willingness to provide leverage improve acquisition economics and expand access to capital. While financing conditions remain below prior-cycle peaks, the trend is positive, creating a more supportive environment for transactions.