As we approach 2025, business leaders are anticipating a surge in mergers and acquisitions (M&A) activity, driven by more favorable economic conditions. According to KPMG’s latest report, an overwhelming 90% of Canadian CEOs are considering acquisitions in the next three years to fuel their company’s growth. At Muia Consulting, we recognize the immense opportunities this trend presents for businesses of all sizes, and we’re here to help you navigate this evolving landscape.
Why M&A is Gaining Momentum
KPMG’s recent surveys reveal that 40% of Canadian CEOs are actively planning major deals, with small- and medium-sized businesses (SMBs) not far behind. Nearly three-quarters of SMBs are considering acquisitions, and some are even open to being acquired. The recent interest rate cuts by central banks in Canada and the U.S., coupled with easing inflation, are giving a significant boost to the M&A market. Lower capital costs are encouraging investors and corporates to make bold moves, with 2025 poised to be one of the busiest years for deal-making in recent memory.
John Cho, KPMG Canada’s National Deal Advisory Leader, highlights that the improving economy and increased availability of acquisition targets will further accelerate this trend. Private equity firms, which have been holding off on exits due to market conditions, are expected to be more active next year, providing even more opportunities for businesses seeking growth.
What Does This Mean for Your Business?
For businesses looking to grow, M&A can be a key strategy. KPMG’s report ranks it as the second most important growth strategy for Canadian CEOs, right after organic growth and ahead of strategic alliances. While larger corporations rely more on M&A for expansion, SMBs are also seeing the value in leveraging acquisitions to scale their operations.
Interestingly, many SMBs are increasingly turning to private capital as a primary strategy for growth. Roughly 80% of businesses surveyed are seeking long-term investors with patient capital—those who can provide more than just funding but also valuable advice to help them scale sustainably. Going public, while once a viable option, has become more complex, time-consuming, and costly, making private capital a more attractive path.
How Muia Consulting Can Support Your M&A Journey
At Muia Consulting, we understand that entering into M&A can be a daunting task, particularly for small and medium-sized businesses. That’s why we are committed to guiding you through every stage of the process, from identifying potential acquisition targets to securing private capital that aligns with your long-term vision.
Here’s how we can help:
- Strategic Advisory: Whether you’re looking to grow through acquisitions or contemplating being acquired, we offer tailored advice that considers your industry dynamics, company goals, and market conditions. Our team will work closely with you to ensure that any M&A decision aligns with your broader business strategy.
- Private Capital Sourcing: As private capital becomes a more attractive option for businesses seeking growth, we can connect you with patient investors who not only bring capital but also align with your company’s vision and values. We specialize in sourcing long-term investment partners who understand your goals and are committed to helping you scale.
- Due Diligence and Risk Mitigation: M&A can involve complex negotiations and a thorough evaluation of risks. Muia Consulting helps ensure that every transaction is beneficial for your business by providing comprehensive due diligence and risk management services.
- Post-Merger Integration: Ensuring a smooth transition post-acquisition is critical to realizing the full value of the deal. We assist with integration planning and execution to help you achieve operational synergies and a unified organizational culture.
The Path Forward
As we head into 2025, businesses need to be proactive in positioning themselves for success in an increasingly competitive market. Whether you are looking to acquire, merge, or seek investment, Muia Consulting is here to help you seize the opportunities that lie ahead.
If you’re ready to explore how mergers and acquisitions can fuel your growth, contact Muia Consulting today. Let us help you turn market trends into actionable strategies for your business.