Updated
Updated · Middle Market Growth · Jul 15
ACG, GF Data Survey Sees 63% M&A Uptick as Valuation and Recession Risks Demand Discipline
Updated
Updated · Middle Market Growth · Jul 15

ACG, GF Data Survey Sees 63% M&A Uptick as Valuation and Recession Risks Demand Discipline

1 articles · Updated · Middle Market Growth · Jul 15

Summary

  • 63% of respondents in ACG and GF Data’s Q3 Market Pulse Survey expect middle-market M&A activity to rise in the second half, slightly above Q2, while sentiment on financing stayed firm.
  • 49% said the financing environment should remain favorable over the next six months, but respondents flagged political or geopolitical instability as the top risk and buyer-seller price gaps as the second.
  • 17% cited an economic downturn or recession as a key threat, with some dealmakers warning a possible Federal Reserve rate hike could pressure companies to close deals sooner and still tip the economy toward recession.
  • Retail was again seen as the sector most likely to face weaker M&A activity, reflecting softer consumer demand and what one respondent called extreme buyer discipline.
  • The survey points to a 2026 middle-market rebound driven by fundamentals rather than speculation, with respondents describing a market far removed from the looser standards of 2021.

Insights

The M&A market is splitting in two. Is this a fundamentals-driven recovery or a new bubble forming?
As megadeals dominate, how can smaller businesses still command top valuations from cautious buyers?
Private credit is tightening. Will a 'perfect storm' of corporate debt create a historic buying opportunity?