Datasite was asked to speak on a panel at the ACG Mid-South Capital Connection in Nashville to discuss the strategic market outlook of the mid-south. Nicholas Renter, on behalf of Datasite, shared a candid look at the current middle-market M&A landscape, describing it as a “push-pull between optimism and caution.” Renter, alongside fellow panelists David Altig with the Atlanta Federal Reserve, Patrick Gimlett with AllianceBernstein, and moderator, Leslie Maher with Holland & Knight, highlighted that while early signs point to a potential uptick in deal activity, many transactions are stalling mid-process. Renter noted an 8-percentage point year-over-year increase in deals placed on hold in Q1 2025, signaling widespread hesitation among buyers and sellers amid economic uncertainty.

Looking ahead, Datasite's proprietary data indicates an outlook that is “cautiously optimistic.” While the first half of 2025 may remain subdued, the second half could see a rebound in deal flow; provided macroeconomic headwinds like interest rates and tariffs stabilize. With private equity dry powder at the ready and valuations becoming more attractive, the market may be poised for a resurgence if confidence returns.

Renter also drew on Datasite’s April 2025 North America Scorecard, which showed a modest 2% increase in successful deal closes in the U.S., despite a slight dip in diligence timelines and overall deal success rates. Sector-specific trends were mixed: healthcare and consumer sectors saw gains, while energy lagged significantly. These dynamics underscore the importance of industry-specific strategies in navigating today’s deal environment.

The panelists’ advice to M&A attendees? “Stay patient but ready to pounce.” Renter emphasized the importance of preparation, keeping data rooms updated, maintaining target watchlists, and being ready to act when the market turns. As he put it, “Keep your powder dry but your radar on.” With the right preparation, dealmakers can capitalize quickly when the window of opportunity opens.

Continue the conversation by checking out our Healthcare Webinar on June 12th here, explore real-time dealmaking trends in our Forecaster Hub here, or connect with your local sales director to learn how Datasite can support your next transaction here.