Mid-Market M&A in 2025: What Smart Owners Are Doing Now
If you’re considering retirement, succession or growth, you’re probably asking the same question we hear daily: Is now the right time to sell — or should I bring in outside capital to scale?
Despite a slower start to 2025, buyer appetite for well-run mid-sized businesses (sub-$50m) remains strong. Corporates and private equity (PE) are prioritising “bolt-on” acquisitions they can integrate quickly to drive growth.
Why activity slowed — and why that’s shifting
Higher interest rates, geopolitics and softer confidence made many owners cautious early in 2025. But as rates trend lower and the market adjusts to ongoing noise, conditions are improving. Lower funding costs typically support both deal volumes and valuations — which is why preparation now matters.
Where demand is strongest
Roughly three-quarters of recent completed deals have been under $50m enterprise value. This is the buyer sweet spot. If your business is resilient, profitable and systemised — you’re in demand.
What buyers want right now:
- Clean financials with consistent earnings and cash conversion (see our guide on reviewing financial statements for due diligence).
- A believable growth story (new products, markets, channels).
- Evidence that value doesn’t rely on the owner.
- Low customer concentration and strong recurring revenue.
- Robust governance, contracts and risk management, including key considerations in a share sale contract.
Private equity remains active
PE investors still have significant capital to deploy in Australia and are actively seeking quality partnerships. For sellers, that can mean competitive pricing and structured deals (review private equity & tax considerations here). For growth-minded owners, PE can provide capital + operational expertise, often via a staged exit that lets you realise value now and share in future upside.
Expect more structure in deals
Buyers are taking longer to complete diligence (specifically the due diligence audit) and are using performance-based earn-outs more frequently. That isn’t necessarily a negative — if you’re well-prepared, structured consideration can increase your overall outcome.
Preparation checklist to improve terms
Owners can follow these four steps to prepare your business for sale to get started immediately:
- Financials: 3+ years of clean, reviewed numbers; normalisations clearly documented.
- Forecasts: bottom-up budgets, drivers and sensitivity analysis.
- Legal & tax: group structure optimised (addressing issues like Division 7A and shareholder loans); IP, key contracts and leases in order.
- People: succession mapped; critical roles documented; incentives aligned (and strategies for resolving director/shareholder disputes).
- Risk: compliance, WHS, privacy, cyber and insurances current.
- Data room: curated, searchable, and ready before you go to market.
Timing: catch the next wave
With further rate cuts anticipated into 2026, the market could get busier and more competitive. Owners who start work now — planning to sell next financial year or even in 12–24 months — are best placed to ride the next upswing. This includes preparing early for deadlines like trustee resolutions & Div 7A: 30 June essentials.
Your options: sale, PE partnership or capital raise
- Trade sale: full or partial exit to a strategic buyer seeking synergies (read our business acquisitions advice).
- PE partnership: sell a majority or minority stake; de-risk now, scale for a larger exit later.
- Capital raise: fund expansion without a full sale; align with long-term goals and control.
How The Quinn Group Helps
As an integrated legal, tax, accounting and corporate finance advisory with a M&A vision, we help owners prepare, position and execute with confidence:
- Exit readiness & valuation uplift: restructure groups, tidy working capital, and provide business valuation services to lock in key contracts.
- Tax-efficient deal structuring: manage capital gains tax on business sales, small business concessions, rollovers, earn-out tax treatment and foreign resident capital gains withholding.
- Legal due diligence & contracts: our sale of business lawyers handle SPA/SSA terms, warranties and risk allocation.
- Capital advisory: identify and engage strategic/PE buyers, negotiate terms, run competitive processes.
- Succession planning: staged exits, management incentives, estate planning alignment.
Thinking about selling or raising capital within the next 2–3 years? Start now. Preparation compounds — and it shows up in price, terms and certainty of close.
Ready to discuss your options?
Book a confidential discussion with our mergers & acquisitions advisors to map your options and a practical readiness plan.
Call 1300 784 667 Enquire OnlineNEED HELP? This article provides general information and should not be considered legal or tax advice. For personalised guidance, please contact our expert team of mergers and acquisitions specialists The Quinn Group by calling 1300 QUINNS (1300 784 667) or +61 2 9223 9166, or submit an online enquiry form to arrange an appointment.
