Paul Donnelly posted this
DEALS ARE GETTING DONE. The question is: which companies are getting them done — and why?
There is no sugarcoating it: the middle-market M&A market has been slow.
Waiting for sustainable momentum to return can test anyone’s patience.
Deals are getting done, as evidenced by a 20% uptick in the first half of 2026—yet activity remains well below the first half of 2024.
At the same time, deal values have declined as activity shifts toward smaller transactions, creating a real bifurcation between the haves and the have-nots.
High-quality businesses with strong growth, defensible margins and clear strategic value are still attracting attention. Others are finding buyers more selective and valuation gaps harder to bridge.
So, what do you do while the market sorts itself out?
Don’t just wait for a better market. Use the market to build a better position.
➞ IF YOU’RE THINKING ABOUT SELLING
Whether your timeline is six months or three years, there are things worth doing now.
🔎 Know what buyers will pick apart.
Customer concentration, owner dependence, inconsistent margins and messy financials only become more painful in diligence.
📈 Build EBITDA, not just revenue.
Growth is good. Profitable, repeatable growth is better.
👥 Make yourself less important.
A company that can run without the owner is generally more valuable.
🎯 Know your real buyer universe.
Strategic fit and synergies can make the same business worth materially more to one buyer than another.
🔀 Keep your options open.
A 100% sale is not the only path. Majority recaps, minority investments, rollover equity and growth capital can all create liquidity and optionality.
If you’re waiting for multiples to improve, make sure the business improves while you wait.
➞ WHAT ARE BUYERS DOING?
🛒 Buyers haven’t stopped buying. They’ve become pickier.
They are underwriting quality more carefully, pursuing strategic fit, looking for proprietary opportunities and using creative structures when valuation expectations don’t line up.
🤝 Good buyers aren’t sitting still. They’re building relationships with the companies they may want to own next.
Sellers should be doing the same thing in reverse.
⏳ DON’T WAIT UNTIL YOU’RE “FOR SALE”
Some of the most useful conversations happen before there is a process.
💰 What could the business be worth?
🎯 Who would value it most?
🔧 What would a buyer want changed?
📅 Is now the right time—or could waiting create more value?
At Coil Partners, we don't do networking — we build a Coil. It's our relational capital; market knowledge and relationships built overtime, not just when a transaction appears.
Our role is not simply to show up when you are ready to sell. We are available to process it with you before there is a process.
Because in a slow market, sometimes the next best move is not a transaction. It is figuring out what will make the eventual transaction better.