Dealmakers entered 2025 with cautious optimism, hoping that the tailwinds from late 2024 would carry through. The economic climate shifted toward volatility, with tariffs, policy shakeups, and global market swings dominating the headlines of the new year. However, as market conditions stabilized across May and June, we’ve seen encouraging trends in market activity kicking off the beginning of Q3. Here at DFIN, these improved trends helped drive record software solutions net sales of $92.2 million in Q2—up 7.7% year-over-year—driven by continued momentum in our compliance platforms, ActiveDisclosure and Arc Suite. The sequential improvement in market conditions helped drive solid overall Q2 results with net earnings of $36.1 million, adjusted EBITDA margin holding strong at 35%, and Operating Cash Flow increasing $12.2 million.
These promising results, combined with the robust capital markets activity we’re seeing so far in the third quarter, signal ongoing momentum and continued market stabilization following the steady trends observed in May and June.
From IPOs and M&A to capital markets and private equity, we’re tracking where activity is picking up, what’s holding steady, what’s in flux, and what’s ahead. We sat down with Craig Clay, President of Global Capital Markets at DFIN, to get his perspective on trends for the rest of 2025 and how companies can prepare for what’s next.
1. How has the dealmaking landscape evolved since the first half of 2025?
The year began with promising momentum, but that quickly softened. Tariff uncertainty and shifting trade polices created a turbulent environment, leading to global market declines — especially in the tech and retail sectors.
Tariff uncertainty remains in the headlines, but market sentiment has begun to stabilize. We’re now seeing encouraging signs and significant IPO pricings from private equity-backed companies, including Accelerant and NIQ Global. In addition, the revival in investment banking fees after a two-year downturn was the headline when Goldman Sachs, JPMorgan Chase, and Citigroup, reported earnings.
This tracks with Brian Levy, Global Deals Industries Leader at PwC US, who states in his Global M&A industry trends: 2025 mid-year outlook, that while deal volumes are down, total deal value is up 15%, signaling more blockbuster transactions are closing, especially in resilient or tech-adjacent sectors. Capital deployment has become more strategic, with leaders balancing M&A against hefty AI investments. This shift is creating opportunities, such as Google’s $32 billion acquisition of Wiz (pending), while also demanding disciplined trade-offs — favoring long-term innovation and operational strength over short-term gains.
2. What’s the overall outlook for the second half of 2025?
The second half of the year appears more stable, offering a potentially more predictable environment for dealmaking. As some volatility subsides, businesses are adapting to a “new normal” where uncertainty is simply part of the landscape. Companies with strong fundamentals and strategic agility will be best positioned to succeed. Strategic buyers with clear M&A goals are expected to stay active, even amid turbulence. Meanwhile, private equity firms are sitting on an estimated $1.2 trillion in dry powder, and the pressure to deploy that capital is only increasing.
3. What sectors are showing the most momentum right now, and where do you see the strongest growth opportunities in the months ahead?
These are the sectors we see poised for growth:
- First, Artificial Intelligence and machine learning. Enterprise adoption and infrastructure investment continue to surge. We expect M&A in AI infrastructure, SaaS, and automation platforms.
- Second, energy. The ongoing demand for energy security, grid modernization, and diversified power sources continues to drive deal activity. In fact, recent years have seen record levels of consolidation, especially among oil and gas companies. We're seeing momentum in areas such as solid-state battery innovation, vehicle-to-grid integration, and grid-scale energy storage, technologies that are critical to supporting a modern energy infrastructure.
- Third, healthcare technology. Aging populations and digital health adoption are likely to spur high activity in medtech, mental health, outpatient care, and biotech.
- Fourth, crypto. We’re seeing a wave of consolidation as crypto companies look to shore up their infrastructure, bring in talent, and meet regulatory demands. With 185 M&A deals already closed this year, the crypto sector is growing up fast.
- Finally, cybersecurity. Rising cyber threats and regulatory pressure are continuing to drive demand. M&A is likely in cloud-native security, zero-trust architecture, and AI-driven platforms.
4. How are companies rethinking their strategies and repositioning for growth in today’s market?
We’re seeing a shift in how companies are approaching their portfolio strategy. Many are taking a step back and reevaluating what’s truly core to their business, and what might be better suited for divestiture.
At the same time, companies are reassessing their portfolios and global footprints. This is driving more carve-outs, cross-border deals, and long-term portfolio realignment.
Bain & Company notes that once valuations rise, “more companies will join those that have learned how to adapt” — and we agree. The next wave of deal activity will likely come from those that stayed deal-ready through the downcycle.
5. Are you seeing companies moving from "wait and see" to “let’s make a move?” What’s driving that shift, or what’s still holding it back?
Yes, there are still headwinds, but we’re starting to see a shift and it’s being driven by a mix of improving market conditions and reduced volatility. The companies and investors who are adapting quickly, managing risk, and staying proactive are the ones who’ll be ready to seize opportunities and pivot, for example, to an IPO, a strategic sale, or DeSPAC.
Now is the time to lean in. Investor appetite for IPOs strengthened at the end of Q2, and that momentum is expected to continue. Companies are preparing to act while sentiment and liquidity remain favorable.
6. What’s one piece of advice you’d give to executives who want to stay agile, competitive, and attractive to investors through the end of 2025?
Readiness and discipline are everything. Windows open and close very quickly both from an IPO and M&A standpoint. The first half of 2025 made one thing clear: waiting is no longer a strategy. Volatility isn’t going away; it’s part of today's reality. But deals are still happening, and globally, they’re getting bigger. EY financial services M&A analysis reports the first half of 2025 saw more $1 billion-plus financial services deals than the entire first half of last year. This is a real shift from hesitation to readiness. Capital is out there, the IPO window is opening, and smart companies are getting ready to move.
As Brian Levy at PwC puts it, “We’re entering a structural phase of volatility that requires continuous planning, not passivity.” To me, the mindset that matters most is readiness over reaction.
At DFIN, we’re built for this kind of environment — whether it’s supporting private company reporting, preparing for an IPO, managing due diligence, and/or staying ahead of SEC filings in a fast-moving market. Companies interested in learning how we can support their next move can chat with a DFIN expert.
