Expert Insights from Charlotte
At our recent Dealmakers Dialogues in Charlotte, industry leaders from Jefferies, William Blair, Bourne Partners, and Service Logic shared perspectives on the evolving middle market M&A landscape. The conversation centered on valuations, sector resilience, and macroeconomic forces shaping deal flow.

Market Dynamics
Deal value is strong, but volume continues to lag, creating what one panelist described as a market “caught between momentum and hesitation.” Despite this, certain sectors are thriving. “We’re as busy as we’ve ever been,” said one industrials expert, while another noted that healthcare’s sheer scale—20% of U.S. GDP, makes it “a slow-growing beast that can’t be stopped.” Technology also stands out for its resilience. Panelist agreed that Tech is insulated from supply chain shocks; it’s bits and bytes across wires.

Valuation Reset
Valuation challenges remain front and center. Sellers anchored to 2021 multiples are gradually adjusting expectations. “Sellers are finally resetting expectations from the go-go days of 2021,” one expert observed. Lower interest rates and a strong public equity market are helping bridge gaps, but only A/A+ assets are attracting buyers. As the advisor panelist put it, “You go to market with a B/B+ and you might run into headwinds.”

Creative Structuring
Flexibility is key. Earnouts and rollover equity are increasingly common, though opinions differ on their effectiveness. One corporate development panelist emphasized partnership, saying, “We’ve never not paid an earnout in full. That’s something we’re proud of.” Others were more cautious, noting that earnouts “rarely work” and often serve as a way to get sellers over the hump.

Technology & AI
AI is transforming dealmaking processes, from resume screening to code development and IT ticketing. “AI is scary, but it’s changing everything,” one panelist remarked. Others stressed the urgency of proactive investment: “We’re investing in tech and AI to avoid getting caught behind the eight ball.” The pace of innovation was underscored with a reminder that “China went from generic copycat to pharma innovator in under a decade. Speed and scale matter.”

Looking Ahead
Despite recent headwinds, optimism prevails throughout the panel. “We’re bullish about the next few years,” said one participant. With $1.5 trillion in private equity dry powder and technology permeating every sector, dealmakers agree the middle market is poised for growth, provided firms remain disciplined, creative, and sector-focused

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