Private equity is showing resilience amid market uncertainty, particularly around trade policies and tariffs. Despite challenges from the new U.S. administration’s tariff approach, financial sponsors are adapting successfully, supported by favorable regulatory conditions and improved valuation alignment between buyers and sellers.
Activity has accelerated in early 2025, with firms actively pursuing both acquisitions and exits after extended holding periods. Privatization remains a key strategy, as public market volatility creates attractive entry points for undervalued companies. This allows sponsors to focus on long-term growth without quarterly reporting pressures.
Investment focus has shifted toward sectors with stable regulatory environments and minimal exposure to trade disruptions. While global opportunities remain relevant, firms prioritize domestic-oriented businesses with predictable cost structures, robust margins, and scalable models that are insulated from international volatility.
Deal execution remains strong for companies less vulnerable to supply chain risks, with tariff considerations incorporated into due diligence rather than blocking transactions. Through strategic flexibility and calculated risk assessment, private equity firms are successfully navigating geopolitical complexities while unlocking long-term value in a market characterized by regional divergence and evolving sector dynamics.
M&A Market Activity
In April 2025, U.S. deal volume experienced a slight increase of 1.2 percent compared to March 2025. This uptick is attributed to a resurgence in private equity activity, particularly in sectors less affected by recent tariff implementations. Despite the broader market uncertainty, firms are leveraging strategic flexibility and focusing on industries with robust domestic operations to navigate the evolving landscape.
The Cleveland M&A market experienced a 21.1 percent decrease in activity in April 2025 compared to the same period in 2024. Cleveland–based companies Range Impact, Berlin Gardens, and Electronic Merchant Systems all completed acquisitions during the month of April.
Deal of the Month
On April 24, 2025, Cleveland–based Ver-A-Fast announced the acquisition of Northeast Ohio–based customer service leader Incept Results. The transaction brings together two organizations with more than a decade of collaboration, now united by shared values, complementary strengths, and a joint commitment to delivering people-first, technology-enabled customer engagement at scale. Building on their combined legacy of remote agent excellence and customer service innovation, the newly formed organization is positioned to broaden its national footprint, enhance digital capabilities, and deliver faster, more personalized customer interactions.
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Sources: PitchBook™, S&P Capital IQ, MelCap Investment Banking knowledge, company websites, and public company filings.
Anthony A. Melchiorre 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 anthony@melcap.com.
Originally published June 3, 2025
