M&A Buyers Increasingly Focus on Quality Over Quantity as Market Trends Evolve
Middle-market mergers and acquisitions buyers are raising their standards for deal quality according to Bennett Thrasher's M&A Transaction Advisory Services. The firm has identified five key trends shaping buyer behavior, including a preference for businesses with recurring revenue, strong cash generation, defensible margins, and sustainable growth potential. Buyers are moving beyond traditional metrics like EBITDA and examining the underlying economic drivers of performance. There is also growing interest in smaller companies as add-on acquisitions due to their strategic fit within existing platforms. Additionally, financial transparency and efficient cash conversion have become critical factors influencing deal speed, structure, and value. The rise of AI is further reshaping how competitive advantages are assessed, with buyers evaluating its impact on productivity, margins, and replicability across sectors such as power, data centers, engineering, and infrastructure.
Topics: AI impact business valuation buyer behavior M&A recurring revenue