Key Takeaways from ACG’s M&A South 2025

Mazzone’s senior professionals recently attended the ACG M&A South Conference—a great opportunity across 100+ meetings to stay ahead on current market dynamics shaping private equity and private credit activity. Below we share a summary of our insights:

Increased Appetite in Key Sectors: Across many of our meetings, we observed common investment thesis from the private equity community. There’s growing interest in industries such as automation, advanced materials, environmental services, testing/inspection, and contractual maintenance models. These sectors are becoming increasingly attractive for investors due to their resilience, innovation, and long-term growth potential.

Debt Market Recovery: The debt market is showing incremental improvements, with a notable rise in private credit capital overhang. In 2024, we also saw renewed competition from banks, which positively impacted pricing and terms; however, in the face of tariff concerns and other market uncertainty, we are noticing heightened scrutiny throughout underwriting processes in the early stages of 2025. Additionally, deferred draw term loans are making a comeback as companies seek greater flexibility in an uncertain macroeconomic environment.

Enhanced Diligence Areas: As M&A advisors, we are guiding our clients in highlighting key factors that strengthen their position during diligence. These include:

• Substantiating improving margin profiles to showcase operational efficiency.

• Ensuring protective measures related to tariffs are well-documented.

• Providing clear visibility of growth drivers and projections to instill confidence in potential investors.

As the market continues to evolve, we remain committed to advising clients to position themselves strategically in evaluating options and maximizing long-term value creation.