CBV Institute Predicts Growth in M&A Activity Ahead
Insights from the CBV Institute’s 2025 M&A Outlook Survey
The Chartered Business Valuators Institute, known as the CBV Institute, has recently released its 2025 M&A Outlook Survey. This survey showcases the sentiments of Chartered Business Valuators who are actively involved in mergers and acquisitions. It shines a light on the shifting confidence levels within the Canadian M&A market as various economic factors come into play.
Positive Trends in the M&A Landscape
With recent economic indicators suggesting a downward trend in debt costs, easing inflation, and fluctuating exchange rates, optimism is on the rise. The 2025 M&A Outlook Survey reveals that 56 percent of CBV Institute respondents predict an uptick in M&A activity over the next 12 to 24 months compared to the previous year. The survey identified key sectors poised for growth, including industrial products and services, healthcare, technology, and energy.
Key Takeaways from the Survey
A deep dive into the survey's results uncovers several important insights about the M&A market:
Encouraging Signs for Cross-Border Deals
By assessing economic climates in both Canada and the U.S., the survey reflects a growing optimism in cross-border M&A activity. Additionally, over half of the respondents expect higher cross-border engagements involving Canadian companies in the upcoming year. Despite this positivity, 22 percent of respondents remain cautious, citing possible geopolitical and economic challenges, such as trade tensions and regulatory shifts.
Steady Deal Size Anticipated
Although growth in M&A activity is expected, only 37 percent of CBVs foresee an increase in deal sizes. Half of the surveyed members believe that deal sizes will remain steady, reflecting a trend similar to that observed in the previous year.
Focus on Mature Companies
The survey indicates that mature companies are attracting significant attention for M&A activities. About 43 percent of the respondents believe that acquisitions of these stable organizations will see a rise, given their secure market positions and reliable business models.
Buyer and Seller Dynamics
When looking at the transaction landscape, 50 percent of respondents anticipate that private companies will lead the transaction volumes, while 34 percent point to private equity portfolio companies as a significant category. On the buying side, private equity firms (48 percent) and private companies (46 percent) are expected to be the primary drivers of transaction activities. Despite a decline in private equity's expected dominance compared to prior years, it remains a formidable force.
Understanding the Methodology
The insights from the 2025 M&A Outlook Survey were gathered between early January and mid-January by the CBV Institute from its members actively handling M&A transactions in the preceding year. Such thorough engagement lends credibility to the findings presented.
About the CBV Institute
Established in 1971, the Chartered Business Valuators Institute is a non-profit organization that regulates and supports the business valuation profession in Canada. With a focus on rigorous standards of training and accreditation, the Institute champions the highest standards of business valuation practices. Currently, it boasts a member base of around 4,000 members and registered students worldwide, devoted to reinforcing the profession's integrity and public interest.
About the CBV Designation
The Chartered Business Valuator (CBV) designation is recognized globally as the hallmark of excellence in business valuation. Those who hold the CBV credential possess the necessary skills and knowledge to navigate the complexities of the valuation landscape effectively. The primary strength of the CBV designation arises from a rigorous program and strict adherence to annual professional standards, including a commitment to ethics, scrutiny of practices, and ongoing education.
Frequently Asked Questions
What does the CBV Institute's survey indicate about the M&A market?
The survey shows a general optimism among respondents, with 56 percent expecting increased M&A activity in specific sectors over the next 12 to 24 months.
Which sectors are expected to witness growth in M&A activity?
Key sectors identified include industrial products and services, healthcare, technology, and energy.
What percentage of respondents see an increase in cross-border M&A?
More than half of CBVs surveyed expect cross-border M&A activity to increase, reflecting ongoing interest in those opportunities.
How does the survey characterize the expected deal sizes in 2025?
The survey suggests that while M&A activity might increase, only 37 percent believe that deal sizes will also rise.
What is the essence of the CBV designation?
The CBV designation represents a high standard of business valuation expertise, recognized internationally, and underscores a commitment to ethical practices within the profession.
About The Author
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