Citizens M&A Outlook Finds Dealmaker Sentiment at a Five-Year High
Citizens Financial Group (NYSE: CFG) has released its 2025 M&A Outlook, revealing dealmaker sentiment at a five-year high with 54% of decision-makers viewing the current M&A environment as strong. The survey of 400 middle-market companies and private equity firms shows increased optimism, with 57% expecting U.S. economic improvement.
Private equity firms are particularly optimistic, with 68% viewing the M&A environment as strong, up from 52% last year. The seller pool has expanded significantly, with 73% of middle-market companies identifying as potential sellers, compared to 63% last year. Key trends include growing openness to partial sales, increased interest in AI capabilities acquisition, and higher consideration of international deals, with 74% of PE firms more likely to consider investments outside the U.S.
Citizens Financial Group (NYSE: CFG) ha pubblicato il suo Outlook M&A 2025, rivelando che il sentiment dei dealmaker è ai massimi livelli degli ultimi cinque anni, con il 54% dei decision-maker che considera attualmente l'ambiente M&A come forte. Il sondaggio condotto su 400 aziende di medie dimensioni e società di private equity mostra un aumento dell'ottimismo, con il 57% che si aspetta un miglioramento dell'economia statunitense.
Le società di private equity sono particolarmente ottimiste, con il 68% che vede l'ambiente M&A come forte, in aumento rispetto al 52% dell'anno scorso. Il numero di potenziali venditori è significativamente aumentato, con il 73% delle aziende di medie dimensioni che si identificano come potenziali venditori, rispetto al 63% dell'anno precedente. Tendenze chiave includono una crescente apertura verso vendite parziali, un maggiore interesse per l'acquisizione di capacità legate all'IA e una maggiore considerazione per affari internazionali, con il 74% delle società di PE più propense a considerare investimenti al di fuori degli Stati Uniti.
Citizens Financial Group (NYSE: CFG) ha publicado su Perspectiva de M&A 2025, revelando que el sentimiento de los intermediarios de acuerdos está en su nivel más alto en cinco años, con el 54% de los tomadores de decisiones considerando que el entorno actual de M&A es fuerte. La encuesta a 400 empresas de mercado medio y firmas de capital privado muestra un aumento en el optimismo, con el 57% esperando una mejora económica en EE.UU.
Las firmas de capital privado son particularmente optimistas, con el 68% viendo el entorno de M&A como fuerte, en comparación con el 52% del año pasado. El grupo de vendedores ha aumentado significativamente, con el 73% de las empresas de mercado medio identificándose como vendedores potenciales, frente al 63% del año anterior. Tendencias clave incluyen una creciente apertura a ventas parciales, un mayor interés en la adquisición de capacidades de IA y una consideración más alta de acuerdos internacionales, con el 74% de las firmas de PE más propensas a considerar inversiones fuera de EE.UU.
Citizens Financial Group (NYSE: CFG)는 2025년 M&A 전망을 발표하며, 딜 메이커의 감정이 5년 만에 최고치를 기록했으며, 의사 결정자의 54%가 현재의 M&A 환경을 강하다고 평가하고 있다고 밝혔습니다. 400개의 중견 기업 및 사모펀드 회사를 대상으로 한 설문조사에서 57%가 미국 경제 개선을 기대하고 있어 낙관적인 전망이 증가하고 있습니다.
사모펀드 회사들은 특히 낙관적이며, 68%가 M&A 환경을 강하다고 보고하여 지난해의 52%에서 증가했습니다. 판매자 풀도 크게 확장되어, 73%의 중견 기업이 잠재적 판매자로 식별되며, 이는 지난해 63%에 비해 증가한 수치입니다. 주요 트렌드로는 부분 판매에 대한 개방성이 증가하고, AI 능력 인수에 대한 관심이 높아지며, 해외 거래에 대한 고려도 증가하고 있습니다. 74%의 PE 회사들은 미국 외부에서의 투자 가능성을 더 높게 고려하고 있습니다.
Citizens Financial Group (NYSE: CFG) a publié son Outlook M&A 2025, révélant que le sentiment des acteurs du marché est à son plus haut niveau depuis cinq ans, avec 54 % des décideurs considérant l’environnement M&A actuel comme solide. L'enquête menée auprès de 400 entreprises de taille intermédiaire et de sociétés de capital-investissement montre un optimisme croissant, avec 57 % s'attendant à une amélioration de l'économie américaine.
Les sociétés de capital-investissement sont particulièrement optimistes, 68 % considérant l'environnement M&A comme solide, en hausse par rapport à 52 % l'année dernière. Le nombre de vendeurs potentiels a considérablement augmenté, avec 73 % des entreprises de taille intermédiaire s'identifiant comme des vendeurs potentiels, contre 63 % l'année précédente. Tendances clés incluent une ouverture croissante aux ventes partielles, un intérêt accru pour l'acquisition de capacités en IA et une plus grande considération des affaires internationales, avec 74 % des sociétés de PE plus susceptibles d'envisager des investissements en dehors des États-Unis.
Citizens Financial Group (NYSE: CFG) hat seinen M&A-Ausblick für 2025 veröffentlicht, der zeigt, dass die Stimmung unter den Dealmakern auf einem Fünfjahreshoch ist, wobei 54 % der Entscheidungsträger das aktuelle M&A-Umfeld als stark wahrnehmen. Die Umfrage unter 400 mittelständischen Unternehmen und Private-Equity-Firmen zeigt einen gestiegenen Optimismus, da 57 % eine Verbesserung der US-Wirtschaft erwarten.
Private-Equity-Firmen sind besonders optimistisch, da 68 % das M&A-Umfeld als stark ansehen, ein Anstieg von 52 % im vergangenen Jahr. Der Verkäuferpool hat sich erheblich erweitert, da 73 % der mittelständischen Unternehmen sich als potenzielle Verkäufer identifizieren, verglichen mit 63 % im Vorjahr. Wichtige Trends umfassen eine wachsende Offenheit für Teilverkäufe, ein höheres Interesse an der Akquisition von KI-Fähigkeiten und eine verstärkte Berücksichtigung internationaler Geschäfte, wobei 74 % der PE-Firmen eher bereit sind, Investitionen außerhalb der USA in Betracht zu ziehen.
- 54% of decision-makers view current M&A environment as strong, a five-year high
- 57% expect U.S. economy improvement, up from 47% last year
- 90% of respondents expect valuations to be stable or higher
- 73% of middle-market companies identify as potential sellers, up from 63%
- PE firms showing strong confidence with 68% positive outlook, up from 52%
- None.
Insights
The survey reveals a significant shift in M&A market dynamics, with 54% of decision-makers viewing the current environment as strong and 90% expecting stable or higher valuations. The 73% increase in potential middle-market sellers, up from 63% last year, coupled with PE firms' heightened buying appetite, signals a potential surge in deal activity.
Three key catalysts stand out: First, the stabilization of valuations has created a more balanced market between buyers and sellers, reducing pricing friction that typically stalls deals. Second, the increased openness to partial sales among middle-market companies expands the deal universe and provides more flexible transaction structures. Third, the integration of AI capabilities as a driver for 38% of PE firms, up from 25%, indicates a strategic shift towards technology-driven value creation.
The survey's findings suggest a robust dealmaking environment for 2025, supported by multiple favorable indicators. The increase in international deal interest, with 74% of PE firms considering cross-border opportunities (up from 54%), indicates a broadening market scope. The improved economic sentiment, with 57% expecting economic growth, provides a solid foundation for deal execution.
The expansion of the seller pool, particularly in the middle market, could lead to increased competition among buyers, potentially benefiting CFG's M&A advisory business. The bank's positioning with 100+ M&A professionals across various sectors positions it well to capitalize on the expected uptick in transaction volume.
The convergence of stabilizing valuations, easing inflation concerns and increased economic optimism creates a particularly favorable environment for Citizens Financial Group's M&A advisory business. With
The trend toward partial sales and PE involvement in middle-market transactions aligns perfectly with Citizens' expertise and market positioning. The bank's comprehensive sector coverage and established presence in key markets should enable it to capture a significant share of the anticipated deal flow, potentially driving higher fee-based revenue in 2025.
Economic growth expected to drive activity as valuations stabilize, inflation worries fade
Economic growth and easing inflation are among the most-cited factors fueling middle-market businesses’ M&A plans in 2025. Fifty-seven percent of all respondents expect the
The bullish outlook for dealmaking is also supported by more upbeat expectations for valuations, particularly among PE firms and larger middle-market businesses. Nearly
“The prevailing headwinds of recent years have really moderated,” said Jason Wallace, head of Citizens M&A Advisory. “We see companies and sponsors coming into 2025 with big plans and this year’s survey shows how focused they are on the growth environment.”
PE firms are especially bullish. Sixty-eight percent believe the current M&A environment is strong, an increase from just
While dealmaking conditions vary across sectors, buyers and sellers are perceived to be on fairly equal footing overall, supporting confidence in the outlook. Notably, the seller pool has expanded substantially, with
Meanwhile, PE firms look ready to shop. Ninety percent of sponsors that anticipate an increase in deal flow in 2025 also expect to buy more than they did in 2024. This combination of willing middle-market sellers and eager PE acquirers could create a conducive environment for dealmaking, especially as small and mid-size businesses become increasingly comfortable with PE partners.
“Valuations have stabilized and buyers and sellers find themselves on fairly equal footing, which should reinforce confidence in dealmaking,” added Wallace. “The enthusiasm is palpable, and we are seeing a high level of M&A interest among both corporates and sponsors.”
Other key findings from the 2025 survey include:
- Growing openness to partial sales. One factor supporting the growth of the seller pool in 2025 is an elevated interest in partial sales. In fact, among middle-market companies, the majority of would-be sellers say they are more open to a partial sale or ancillary business-unit sale, rather than a full exit.
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Artificial intelligence could drive dealmaking. A recent Citizens survey shows that clear use cases for AI are emerging. As the technology continues to mature, the race to add AI capabilities could support dealmaking. In fact, among PE firms that anticipate an increase in deal flow this year,
38% cite a desire to add AI companies and capabilities to their portfolio as a key driver of activity, up from25% last year.
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Interest in international deals persists. Among middle-market companies,
52% of sellers and46% of buyers say they would consider international deals. Notably, PE firms are even more bullish. Seventy-four percent say they are significantly more likely to consider investment opportunities outside theU.S. in 2025, up from54% last year.
The survey was conducted among
Business executives at 274 middle-market firms and 126 PE firms who are directly involved in decision-making related to M&A (owners/partners, CEOs, presidents and other C-level executives and directors) completed a phone or web-based survey between October and November 2024.
For more information on this year’s Citizens Middle Market M&A Outlook, please visit our website here. To register for a Jan. 23 webinar on the report, please go here.
Citizens specializes in middle-market mergers and acquisitions. Citizens combines sector intelligence with a client-focused approach to realize our clients' true value. The Citizens team has more than 100 M&A professionals specializing in a range of industries across
About Citizens Financial Group, Inc.
Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with
View source version on businesswire.com: https://www.businesswire.com/news/home/20250108160867/en/
Frank Quaratiello
frank.quaratiello@citizensbank.com
617.543.5810
Source: Citizens Financial Group, Inc.
FAQ
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