Despite 2024 being characterized by high interest rates and political uncertainty, we saw the global M&A market gain continued momentum as the year came to a close, showing a 25%+ and 13%+ YoY jump in deal values and volume, respectively. We expect this momentum to accelerate into 2025, driven by pent- up demand from both strategic and private equity buyers. As a more stable
economic backdrop looms, strategics are beginning to refocus efforts on driving growth through M&A. Additionally, growing urgency among private equity groups to put capital to work, driven by the large and aging dry powder overhang and an increasingly eager limited partner community, is driving demand for increased M&A in 2025. Lastly, while the Fed’s rate path is uncertain, the consensus expectation is for rates to either stay flat or fall further through 2025 and thereafter, creating a more favorable rate environment for accelerated M&A activity. We expect the juvenile products and toys and games segments to be a beneficiary of these tailwinds as innovation and consolidation remain top-of-mind for investors and operators in the category.
Key Takeaways
For more information, please contact Sophea Chau, Senior Managing Director, at 617.603.8963, or Max Dadagian, Senior Associate, at 617.603.8968.
