Andrew Lucano Prominently Cited in The M&A Lawyer on Positive Outlook for 2025 Middle Market Deals

Andrew Lucano, co-chair of the firm's Mergers & Acquisitions practice, was quoted extensively by The M&A Lawyer in the December 2024 edition’s article, “Middle Market M&A: Recovery Around the Corner?” Lucano discussed how middle-market deals could help lead the way to a fresh wave of deal activity in 2025.

“There are a number of reasons for optimism. For one thing, the interest rate cuts, and the expected future cuts is a helpful sign, but not the entire story. There are reduced inflationary numbers, and increased pressure from limited partners for private equity firms to continue generating returns. Private equity activity has been much slower during 2023 and the first half of 2024, so there is certainly some pent-up demand. Limited partners are getting anxious and want to start seeing a return of deal activity to generate returns. Of course, there is still certainly no shortage of cash sitting of the sidelines waiting to be deployed, which is always a good sign.”

Lucano continued:

“What remains true, regardless of year-by-year volume trends, is that M&A is the most proven method for accelerated growth for a company. M&A is a well-traveled path for companies trying to keep pace with their competition. I also think there’s more confidence brewing right now. People have been worried about ‘when is the recession coming?’ but it never came, and that fear has alleviated in a big way for the time being.”

Moreover, Lucano stated:

“No-survival deals had been increasing over the past several years—this is the first decrease in some time. It’s an indication of buyers taking a more cautious approach, wanting sellers to have some skin in the game and to stand behind their representations and warranties. In the end, it’s always about the leverage of the parties in a particular transaction and the specific facts and circumstances applicable to the subject transaction. If the seller has an A class asset with great appeal to drive competition among multiple buyers, the leverage will lean toward the seller and you will be more likely to see a no-survival deal. On the other hand, when the buyer has more leverage, it is more likely that a no-survival deal format will not be used.”