As 2025 kicks off, the M&A landscape is ripe with optimism. According to the SS&C Intralinks 2025 Global M&A Dealmakers Sentiment Report, 87% of dealmakers anticipate increased activity, with private equity (PE) firms particularly bullish. However, this surge in activity comes with challenges and opportunities that require strategic focus.
At NEXT LEVEL Partners, we specialize in helping private equity firms navigate these complexities with precision, leveraging Lean tools to deliver measurable results in due diligence and portfolio performance as well as providing bandwidth to fill short-term leadership gaps with our Interim Management capabilities. Longer term, we also support retained search to secure permanent leadership for sustained success.
Key Trends in M&A for 2025
- Increased Deal Volume and Size
- Nearly half of PE firms expect to work on transformative deals exceeding $10 billion.
- This represents a significant shift from mid-market deals, with dealmakers leaning toward larger, high-value opportunities that require more structured integration strategies.
- Balancing AI & On-the-Ground Due Diligence
- The adoption of AI and technology in M&A is accelerating, with 53% of respondents citing AI as a disruptive force.
- However, while AI can enhance data processing and analytics, successful due diligence still requires boots-on-the-ground insights – a firsthand view of operational realities that technology alone cannot replace.
- Firms leveraging both digital tools and direct, hands-on assessments will enjoy a competitive edge, ensuring they don’t rely on AI at the expense of real-world process evaluation.
- Focus on Industry-Specific Growth
- Sectors such as financial services, technology, and energy continue to attract high interest, driven by long-term growth potential.
- With increased specialization, successful M&A deals will depend on targeted value creation strategies tailored to each industry’s unique operational challenges.
- Securing the Right Leadership for Value Creation
- Interim Leadership – Placing experienced leaders into immediate roles to stabilize operations and maintain momentum post-close.
- Retained Search – Finding the right long-term executive who aligns with the company’s culture and growth strategy.
- Seamless Transitions – Using our interim leaders to train and transition the permanent hire, ensuring a smooth leadership handoff and sustained success.
Challenges on the Road Ahead
- Intensified Competition – Greater competition for high-value deals requires stronger execution and post-close integration planning.
- Regulatory Complexity – Political instability and regulatory changes remain top concerns for dealmakers globally.
- Evolving Due Diligence Needs – As deals grow in complexity, the due diligence process becomes more critical, demanding hands-on operational assessments, not just financial modeling.
How NEXT LEVEL Partners Supports M&A Success
At NEXT LEVEL Partners, we specialize in helping private equity firms and their portfolio companies succeed by applying proven Lean principles at every stage of the deal lifecycle.
- M&A Due Diligence: On-the-Ground Insights that Drive Smarter Deals
A thorough diligence process goes beyond spreadsheets and virtual data rooms. It requires seeing operations firsthand to assess risks, identify bottlenecks, and validate value-creation plans.
Our boots-on-the-ground approach includes:
- Data Room Analysis – Conducting detailed operational and financial reviews.
- Onsite Operational Due Diligence – Visiting facilities to evaluate firsthand the capabilities, efficiency, and scalability of operations.
- Comprehensive Summary Reporting – Providing a clear assessment of risks and opportunities based on what we see on-site.
- Post-Acquisition Value Creation: Driving Lasting Impact
Once the deal is signed, value creation depends on execution. We help portfolio companies achieve sustainable improvements in EBITDA, operational efficiency, and team engagement through Lean-driven transformation strategies.
Key tools include:
- Value Stream Mapping – Defining the current state and building a roadmap for the future state (e.g., the Order-to-Cash process).
- Kaizen Events – Rapidly resolving bottlenecks and unlocking operational value.
- Standard Work Practices – Ensuring consistency and scalability in daily operations.
- Root Cause Analysis – Identifying recurring issues and eliminating waste at the source.
- Transactional Process Improvement: Optimizing Information & Workflow
Our work extends beyond the physical movement of goods and services, we also optimize the flow of information.
We help companies:
- Streamline transactional processes to improve order fulfillment and customer service.
- Maximize existing systems to reduce manual work and ensure data-driven decision-making.
- Improve cross-functional alignment so that information flows efficiently between teams and departments.
Why Lean Tools Are Essential for M&A
The 2025 Global M&A Dealmakers Sentiment Report highlights that firms most likely to succeed will:
- Leverage both data-driven insights & firsthand operational assessments for better decision-making.
- Build resilient, agile operations that can adapt to changing markets.
- Foster a culture of continuous improvement to sustain long-term growth.
These goals align perfectly with Lean principles, which emphasize efficiency, waste elimination, and hands-on problem-solving. By integrating Lean into M&A strategies, PE firms can not only maximize value but also create scalable, sustainable systems for future growth.
Prepare for a High-Impact 2025
As the M&A market accelerates, firms that combine operational rigor with strategic vision will lead the pack. At NEXT LEVEL Partners, we help private equity firms optimize due diligence, execute post-close value creation, and build long-term operational excellence.
Let’s discuss how we can help your firm navigate the opportunities and challenges of 2025. To learn more about our experience in the private equity industry, click here.
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