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- What Happened in M&A Last Month - August 2025
What Happened in M&A Last Month - August 2025
Issue #48
Welcome back to the Mid Market Insider!
Today, I’m bringing back a version of the newsletter we did a few weeks back. Instead of sharing tactical advice for business owners, I’m sharing what happened in M&A last month, some key movements in the industry, and what you should keep an eye out for as a business owner.
What Happened in M&A Last Month - August 2025
Every month, there are shifts in the M&A landscape worth paying attention to… especially in the lower to middle market.
Here are five headlines that caught my attention in August, along with why I think they matter:
1. Exits Surge Amid Improved Liquidity
Q2 2025 was the strongest half-year for private equity exits in three years.
What’s driving it? Corporate buyers are stepping up, and deal terms are loosening just enough to get deals over the finish line.
For owners, this is a reminder: even in a slower market, strategic buyers with cash and a plan can still move quickly when the fit is right.
2. 401(k) Access to Private Equity
A recent executive order now allows private equity (and even crypto) in 401(k) plans.
This could open the door for more retail capital, but it also brings questions about liquidity, fees, and transparency.
If you’re a business owner, this might not directly affect your business tomorrow, but the ripple effect on capital availability could be real over time.
Fund-level NAV lending (borrowing against the value of fund assets) is on the rise.
It’s becoming a popular way for firms to generate liquidity without selling portfolio companies.
Some deals you might have expected to see come to market could instead stay private a while longer.
4. Middle Market Remains Resilient
While mega-deals are slowing, middle-market M&A is holding strong, especially through bolt-ons and smaller buyouts.
This segment tends to be less dependent on debt market swings and more about operational opportunity.
If you’re in this range ($10M–$100M), you’re still in a healthy, active part of the market.
5. Corporate Carve-Out Fundraising Hits Record Pace
Pacific Avenue Capital Partners just raised $1.65B in four months for a carve-out fund, blazing speed in today’s fundraising climate.
It’s a reminder that specialized funds with a clear thesis can still raise significant capital, even when the broader market is tight.
Final Thought
The middle market may not make the biggest headlines, but it’s proving to be one of the steadiest parts of the M&A world right now.
If you’re an owner, the big takeaway is this: even with uncertainty in the macro picture, there are buyers and investors actively looking for well-run, transferable businesses.
Reader Question of The Week
For context, this is a recent section I’ve decided to add. After receiving many questions in my day-to-day as the co-founder of Four Pillars, I wanted to share the most common ones in my newsletter in hopes that it’s valuable to you in some way.
If you have a question you want answered in a future newsletter, please reply directly to this email and I’ll do my best to answer it. Now, onto this week’s question:👇
Q: "How do you qualify a potential buyer?"
Selecting a buyer has some elements that are similar to hiring a high-level employee. It is challenging, and no one is perfect at it.
How do you increase your odds of being successful, though?
My number one piece of advice there is to get to know buyers over several months. Years even if possible.
Over time, you get to see how people respond to certain issues. You will see what questions are asked when there is a surprise in the business, good or bad.
📺 What to Watch This Week
Watch one of our recent videos on YouTube…
Why Being Unapologetically Yourself Drives Success
Click the link below and check it out:
That’s all for today’s newsletter! Thanks for reading!
📅 Next Week:
Next week, Next week, I’ll be diving into what diversification actually means for a business, and why it’s about more than just avoiding customer concentration.
We’ll dig into the two areas every owner should focus on to keep one event, one customer, or one person from putting the entire company at risk.
Keep building,
Nick
P.S.
If you want to discuss your business goals in greater detail, book a discovery call: