PowerComps Q4-2025 Market Report: Valuation Certainty Takes Precedence Over Deal Volume in Middle-Market M&A

TAMPA, Fla., Jan. 28, 2026 /PRNewswire/ -- PowerComps by TagniFi has released its Q4-2025 Market Conditions and Valuation report, highlighting continued resilience in middle-market M&A valuations amid constrained deal activity. Despite a subdued transaction environment, valuations held firm, driven by strategic fit and operational fundamentals rather than volume or leverage.

"2025 wasn't about how many deals got done — it was about how and why they got done," said Bob Wegbreit, Director of PowerComps. "Valuation certainty became the linchpin for decision-making across both buy-side and sell-side participants."

Key Trends and Takeaways:

• Valuations Remain Durable: Across all size tiers, median valuation multiples were stable year-over-year. Assets with scale, margin, and resilience maintained pricing power, while those in risk-prone sectors faced delays or markdowns.
• Strategic Buyers Lead: Corporate acquirers represented 58% of transactions in the $10–200 million TEV range, as financial buyers pulled back on new platform investments. Private equity activity remained concentrated in add-on deals.
• Shift to Medians for Clarity: PowerComps now emphasizes median valuation multiples to counter distortion from outliers, offering a more accurate benchmark for advisors and investors.
• Capital Markets Remain Accommodative: Leverage and pricing entering 2026 are consistent with 2025's most competitive terms, but capital deployment — not cost — is now the defining valuation variable.

Industry Spotlight: Machinery Manufacturing (NAICS 333)

Machinery Manufacturing serves as a textbook example of how scale is commanding a premium in today's M&A market. PowerComps data shows that as enterprise value increases, valuation multiples expand significantly, reinforcing buyer preference for assets with size and predictability.

The data underscores a consistent premium for larger businesses in the sector, driven by higher margins, lower perceived risk, and operational scalability.

About PowerComps

PowerComps delivers verified private company transaction data for middle-market M&A, enabling dealmakers to set expectations, underwrite risk, and win mandates with precision. The platform accepts confidential, blind submissions from private equity firms, family offices, and advisory firms in exchange for complimentary access.

About TagniFi

TagniFi is modernizing financial data with a platform built for accuracy, transparency, and efficiency. Used by leading valuation firms, investment banks, and private equity professionals, TagniFi delivers detailed financial, market, and M&A data through APIs, Excel models, and analytic tools. From private market comps to public company fundamentals, TagniFi powers better decisions with better data.

For media inquiries or participation details, contact Bob Wegbreit at [email protected] or 800-824-6434.

SOURCE TagniFi