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PowerComps Q4-2025 Market Report Highlights

The latest report from PowerComps, a service by TagniFi, provides valuable insights into the state of middle-market M&A as we delve into the intricacies of market valuations and transaction behaviors observed in Q4-2025. This analysis signals a time of stability within the market, emphasizing the role of valuation certainty in driving decision-making processes.

In a year where overall transaction volumes were lower, the report highlights how participants on both the buy-side and sell-side shifted their focus toward valuations that reflect operational viability and strategic alignment rather than sheer deal numbers. As Bob Wegbreit, Director at PowerComps states, "2025 wasn't about how many deals got done — it was about how and why they got done."

Stability in Valuations Across Market Segments

The report notes that valuations have proven durable across various size tiers within the market. Median valuation multiples remained stable year-over-year, showcasing that assets with scale, profit margins, and operational resilience retained their pricing power. Conversely, assets in riskier sectors tended to experience markdowns or delays.

The data presented underscores a clear delineation in buyer sentiment, with strategic buyers taking the lead in transactions. Corporate acquirers accounted for 58% of deals within the $10-200 million Total Enterprise Value (TEV) bracket, marking a significant pivot as financial buyers reduced their appetite for new platform investments.

Key Trends and Takeaways

1. Valuation Multiples: Emphasis on median valuation multiples is increasingly crucial to provide accurate benchmarks, counteracting the distortions created by outlier transactions.

2. Accommodative Capital Markets: The entry of 2026 anticipates leverage and pricing to remain competitive, with a notable shift in focus towards capital deployment being the defining factor in valuations. This shift showcases a trend towards a qualitative assessment of assets based on their strategic fit and robust operational frameworks.

Machinery Manufacturing as a Case Study

The report highlights the Machinery Manufacturing sector (NAICS 333) as a paramount example, illustrating that scale commands a premium in the current M&A landscape. The data indicates a strong correlation between enterprise size and valuation multiples. Larger enterprises in this sector enjoy higher margins and lower perceived risk.



As evident from the table, larger entities command significantly better valuations, reinforcing buyer preferences for assets exhibiting substantial size and operational predictability.

Conclusion

As PowerComps and TagniFi continue to refine their data offerings and analytics, the insights from the Q4-2025 Market Conditions and Valuation report serve as a crucial resource for investors and advisors navigating the middle-market landscape. The focus on valuation certainty and strategic alignment indicates evolving practices in M&A, shaping a landscape that favors robust operational practices over mere volume in deal-making.

For any further inquiries regarding this report or participation in future disclosures, readers are encouraged to reach out to Bob Wegbreit at [email protected] or contact PowerComps directly.

About PowerComps and TagniFi

PowerComps delivers verified private company transaction data specializing in middle-market M&A, empowering dealmakers to set realistic expectations and manage risks with precision. Meanwhile, TagniFi is redefining financial data platforms, providing essential services to valuation firms, investment banks, and private equity professionals to support informed decision-making.