Dominique Carli speaks with Mergermarket about why Canadian dealmakers expect 2024's positive momentum in M&A to carry over into 2025. Momentum is expected to continue on the back of lower inflation, stabilized interest rates, and the large, accumulated cash surpluses of companies and private equity firms.
Dominique says financial sponsors are expected to continue playing an important role in dealmaking, focusing mostly on mid-market transactions amid a shortage of larger targets. Additionally, a large number of sponsor exits were delayed in 2024 and are expected to happen in 2025, she adds.
As far as whether or not President Trump goes ahead with his plans to impose tariffs as soon as February 1, Dominique says time will tell. Overall, a more merger friendly environment is expected under a Trump administration.