AI is transforming M&A by accelerating deal execution and enhancing analytical capabilities across the transaction lifecycle. In due diligence, natural language processing enables rapid review of legal and financial documents, reducing timelines and oversight risks. Machine learning supports target screening and valuation by analyzing extensive market data to identify patterns and synergies that traditional modeling might miss.

Post-merger integration also benefits from AI through predictive analytics that anticipate workforce challenges and optimize organizational structures, improving value capture. However, AI remains a complement to, not a replacement for, human judgment. Data quality issues, limited explainability, and context gaps — especially in smaller deals — require expert oversight.

Successful AI implementation demands deal-specific strategies and collaboration among deal teams, technology providers, and stakeholders. As these tools evolve, firms that effectively integrate AI into their M&A processes will gain competitive advantages and achieve superior outcomes throughout the deal lifecycle.

M&A Market Activity

U.S. deal volume in June 2025 rose by 1.9 percent compared to June of the prior year, but YTD volume still lagged behind the prior YTD period by 2.6 percent. Conversely, deal value in H1 2025 outperformed the prior year by 12.5 percent. An increase in mega-deals, by both strategic and PE-backed platforms, drove the increase in deal value, with a large amount of the enterprise value related to AI and tech-focused acquisitions.

The Cleveland M&A market experienced an uncharacteristically slow June that resulted in 30 percent fewer transactions completed than in the same period in 2024. However, there are still several noteworthy transactions completed by both strategic acquirers and private equity firms. RPM International, ACU-Serve, Foundation Software, and Unison Risk Advisors all completed strategic acquisitions, while Cyprium Investment Partners completed a significant platform investment. Additionally, Triad Personnel Services, Cleanland Car Wash, and A&A Management Group all realized successful exits during the month.

Deal of the Month

On June 11, 2025, Strongsville-based Foundation Software LLC, the nation’s leading provider of construction software and services, announced its acquisition of Vendrix, Inc., a construction financial management platform offering corporate cards, expense management, AP automation, and bill pay solutions. With the addition of Vendrix’s expense management and AP capabilities, Foundation Software now offers digital tools that cover nearly every stage of a construction project — giving contractors complete control throughout the project’s lifecycle.

“Vendrix is construction-focused like us, and they handle an important part of the financial process that our users have been asking for,” said Mike Ode, CEO of Foundation Software. “It has been our goal to build a comprehensive digital solution to cover the full lifecycle of a construction project, and this acquisition helps us achieve just that. I can’t wait to see all the ways our clients benefit from this addition.”

Read the full article in Smart Business.

Sources: PitchBook™, S&P Capital IQ, company websites, and public company filings.

Daniel M. Bowman is a Director and Principal at MelCap Partners LLC, a middle-market investment banking advisory firm. For more information on MelCap Partners, please visit www.melcap.com or email dan@melcap.com.

Originally published July 30, 2025