Question · Q4 2025
James Edwin Yarrow inquired about the M&A composition of 2025, the outlook for continued large deals versus smaller deals, and when and why smaller deals might catch up. He also asked about the impact of the evolving geopolitical backdrop on boardroom dialogues and transaction activity.
Answer
CEO Navid Mahmoodzadegan stated that larger cap transactions are likely to continue due to motivations for scale, efficiency, technology positioning, and a conducive market/regulatory/financing environment. He anticipates the middle market to pick up in 2026, driven by dissipated issues, LP pressure, and sponsors monetizing older portfolio companies. Regarding geopolitics, Mr. Mahmoodzadegan acknowledged it's always a topic, but clients are often playing through short-term flare-ups to position their businesses for long-term value creation and technology disruption.
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