Private equity add-ons on the rise, small deals face challenges

Market uncertainty is further depressing merger-and-acquisition activity. To maximize deal flow, private equity sponsors have paid increased attention to smaller add-on acquisitions, which create a unique set of challenges. 

As evidence of the pivot, deals having less than US$25 million in enterprise value composed 43 percent of private equity add-ons in 2024.

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Originally published by Bloomberg Law as “How to avoid big problems small deals can pose in M&A” on May 2, 2025.