The recent M&A Source fall conference in Phoenix, AZ was well attended and provided valuable insights into the current state of M&A. While the M&A landscape has faced challenges with last year’s presidential election, tariffs, and growing economic uncertainties, here are a few key takeaways:
AI Is Reshaping M&A
AI now helps identify early-stage sellers, spot industry signals, and match the right buyers to the right opportunities faster and more accurately. AI tools can analyze years of financials in seconds, normalize data, flag risks, benchmark performance, and model scenarios with greater clarity. While legal advice remains essential, AI helps draft and review deal documents to improve accuracy. Overall, AI doesn’t replace human advisors—it amplifies them. The best outcomes still come from an advisory team providing sound judgment, extensive deal experience, and strategic guidance. Our firm continues to implement AI tools to help improve efficiency and extend our capacity while still working to preserve client confidentiality throughout the process.
Buyers Are More Focused and Educated
With greater access to data, benchmarks, online education, and professional support, buyers now enter the process with clearer expectations and sharper questions. They understand valuation mechanics, Quality-Of-Earnings (QofE) reviews, working-capital requirements, customer concentration risks, and operational dependencies better than ever. Our firm has seen due diligence expectations increase, which can create unwanted delays if the seller is unprepared.
Business Owners Need To Be Prepared
Too many well-established businesses are not preparing at least a few years before going to market, yet today’s competitive market shows being prepared directly impacts valuation, buyer confidence, and deal success. Owners with soild financials, documented processes, and reduced dependencies enter the market with a measurable advantage. While in the past buyers most often buyers pay for a QofE as part of their due diligence, more and more sellers are investing in a QofE prior to going to market which often pays dividends at the closing table by increasing overall valuation (including addressing working capital requirements early in negotiations).
While 2025 was not what most expected, many believe we’re heading into a “steady but selective” period this next year. Well-prepared companies with strong fundamentals will benefit; those with weak documentation, questionable financials, or high operational risk will face greater scrutiny. As a business owner, are prepared for when the time comes to sell? The majority of our business comes from referrals, and we appreciate your continued trust in our firm.