Private Equity Hesitation in the M&A Market

June 2, 2025 - 03:20

The mergers and acquisitions (M&A) landscape is showing signs of recovery, with several high-profile deals capturing attention. Notable transactions include Salesforce's acquisition of Informatica, e.l.f. Beauty's $1 billion purchase of Hailey Bieber's Rhode skincare brand, and Dick's Sporting Goods' move to acquire footwear retailer Foot Locker. These developments indicate a renewed interest in M&A activity as companies seek strategic growth opportunities.

Despite this resurgence, private equity firms remain cautious about entering the M&A space, primarily due to elevated interest rates. The financial environment has created challenges for leveraged buyouts, making it difficult for private equity investors to find favorable terms. Marc Cooper, CEO of Solomon Partners, recently shared insights on the current M&A market and what factors could entice private equity back into the fold. As the market continues to evolve, stakeholders will be watching closely to see how these dynamics unfold in the coming months.