Baird's Business Owner Solutions Team Maintains Momentum in 2025

Baird’s Business Owner Solutions (BOS) team had a strong close to 2024, making it our most successful year-to-date, highlighted in part by our recent transactions below. While on a global scale, M&A activity has slowed as dealmakers assess policy and economic uncertainty, we are cautiously optimistic that M&A activity will continue in the lower-middle market as key themes emerge and evolve in 2025.

• Historically, the lower-middle market has remained relatively insulated from the highs and lows which effect the larger dealmaking market.
• Financial sponsors are facing increasing pressure to deploy dry powder after tempered acquisition spending in 2023 and 2024. Small acquisitions and add-ons are lower risk investments in the current environment.
• Strategic buyers are likely to reach into their M&A playbooks to drive growth and shareholder returns amidst slowing organic growth.
• Increased activity in 2024 suggests the market has adjusted to high interest rates, though uncertainty surrounding global trade and macroeconomic policy remains.
• Well-performing, cycle-resilient companies are always valuable, no matter the stage of the market.

We look forward to navigating these opportunities and challenges alongside our clients in the year ahead.