Highlights from the report:
- Modern AI expertise, data optimization, and enterprise software consulting and implementation (e.g., Salesforce, SAP) remained top areas of M&A focus.
- Q1 2025 M&A activity was healthy, with deal volume slightly up from Q1 2024 – buyers are still exercising quite a bit of discipline, favoring companies with distinct competitive differentiation, a robust commercial strategy, and clear scalability.
- Overall IT spend is projected to grow nearly 10% this year, up from 7.7% growth in 2024 as the demand environment continues to re-strengthen.
- PE firms are exploring creative roll-up strategies, particularly in the MSP space – some are combining smaller assets to build platforms versus anchoring around a single large target.
- Strategic buyers are focused on expanding capabilities, enhancing delivery models, cross-sell potential, and access to verticals where digital transformation needs are extensive and complex (e.g., regulated sectors like Financial Services or Healthcare).
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DISCLAIMER This presentation is intended for information and discussion purposes only and does not constitute legal or professional investment advice. Statements of fact and opinions expressed are those of the participants individually and, unless expressly stated to the contrary, are not the opinion or position of Harbor View Advisors, LLC (“HVA”). The information in this presentation was compiled from sources believed to be reliable for informational purposes only. HVA does not endorse or approve, and assumes no responsibility for, the content, accuracy or completeness of the information presented.
