Private Equity Continues to Play a Pivotal Role
Eighty-three percent of respondents believe PE investors will boost deal volume in the coming year, and 76% expect due diligence to remain a top priority. However, the tendency for PE firms to hold investments longer is having mixed implications for dealmaking:
- 19% of respondents said it will have a significant positive impact,
- 31% expect a somewhat positive impact,
- 16% foresee no notable impact,
- 30% anticipate a somewhat negative impact, and
- 3% believe it will have a significant negative impact.
The most commonly cited deterrents to PE exits include economic and market volatility (51%), limited exit opportunities, misaligned valuations, and the need for strategic value creation. Regulatory and compliance hurdles, deal complexity, sector-specific return timelines, and a growing preference for sustainable growth also contribute to a more cautious and calculated approach to exits.
Please indicate your level of agreement with the following statements: “Over the past 12 months…”
Please indicate your level of agreement with the following statements: “Over the next 12 months…”
Confidence in commercial due diligence is high, which reflects the increasing sophistication of PE firms in identifying and quantifying value creation levers. However, the emphasis on market analysis and customer insights shows that firms are digging deeper into demand-side dynamics before committing capital.
Do you believe current asset valuations are…?
How much do you agree with the following statement: “Valuation gaps are a major barrier to deal with execution in our current pipeline.”
Strategically, PE firms are shifting toward resilient, high-cash-flow targets, often in sectors with strong fundamentals but fragmented ownership—such as healthcare services, industrials, and tech-enabled platforms. The commentary around tariff impacts and geopolitical shocks also suggests that cross-border deals may face more scrutiny and longer timelines.
On a scale from 1-10, how confident are you that your current commercial due diligence process adequately identifies and quantifies value creation opportunities?
How has your M&A strategy shifted since the beginning of the year in response to macroeconomic conditions?
How will the U.S. automotive, transportation and mobility M&A market for the next 12 months compare to the last 12 months?
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“Private equity continues to be a driving force in M&A, not just as a source of capital but as a catalyst for transformation. In today’s market, PE firms are targeting sectors where operational efficiency and digital scalability can unlock outsized returns, making strategic acquisitions more than just financial plays—they’re platforms for reinvention.”Igli Psari |