The data shows M&A activity Q3 remained low, partly impacted by the summer break and lingering macroeconomic and tariff-related uncertainty. However, since September we have certainly seen an uptick in our own work. The market seems to have shrugged off market disruption and restarted in earnest. A lot of transactions that felt too difficult to price a year ago have now come back. Buyers and sellers are meeting in the middle, which is why we’re seeing sensible valuations and a high completion rate.

Unsurprisingly, we see that healthcare and software remain strong, as sectors that are not as tied to market cycles. But we’re also seeing industrials and consumer goods return to the table. At consumer goods companies, carve-outs are back in fashion, from Unilever’s divestments to Nestlé’s planned water business sale, and we expect to see more of this activity.

Funds are back doing deals, but they’re also working through a Covid-era backlog. Some portfolios are still heavy with businesses bought on pandemic trends, which is creating both pressure and opportunity. More work is being done on portfolio companies to prepare them for exit, which should help feed the pipeline going forward.

Looking ahead, currently we’re 80% of the way to peak market activity, but it feels healthy and sustainable. The wheels are turning again, and the discipline around pricing and portfolio management is a sign of a more mature market.