2025 M&A Outlook: Why Strategic Buyers Are Gearing Up for a Big Year
With digital transformation accelerating and interest rates easing, marketing M&A is poised for growth—if buyers and sellers can align on value.
Evros Group’s latest M&A Sentiment Survey reveals growing optimism among acquirers and agency founders alike. As tech-forward capabilities, AI adoption, and scalable delivery models take center stage, the firms best positioned for transformation—not just topline growth—will lead the next wave of deals.
Evros Group’s latest M&A Sentiment Survey for the advertising and marketing sector offers an inside look into the evolving expectations of middle-market buyers and sellers as we enter what is shaping up to be a dynamic year for dealmaking.
The survey—based on months of interviews with founders, CEOs, private equity investors, and holding company executives—reflects a cautiously optimistic sentiment across the industry. After a strong rebound in deal activity in 2024, both buyers and sellers expect further momentum in 2025, particularly among scaled, tech-forward agencies positioned for digital transformation.
Key Takeaways
2025 is expected to be a growth year for M&A
75% of buyers plan to be more acquisitive this year than last, with 73% expecting deal flow to remain strong or improve. Sellers are equally motivated: 41% report increased interest in exiting their businesses in 2025, while another 38% remain as committed as in 2024.
Advertising budgets and revenue forecasts are trending upward
A majority (55%) of respondents anticipate that client advertising budgets will grow in 2025. Two-thirds of sellers expect their net revenue to increase by at least 10%, reinforcing the sector’s strong business fundamentals.
Digital transformation is driving M&A interest
Buyers are targeting agencies that enable digital innovation. Key areas of interest include AI-powered services, Adobe stack capabilities, customer experience platforms, and performance attribution tools. Firms with enterprise clients, consistent growth, and scalable delivery models are seen as especially attractive.
Market Drivers and Headwinds
The macroeconomic environment is beginning to stabilize, and expectations of declining interest rates are helping reignite M&A confidence. Still, several persistent challenges could temper the pace of activity:
Valuation gaps remain the top concern
53% of buyers believe agency valuations in 2024 were too high, and valuation/seller expectations remain the number one obstacle heading into 2025. Both buyers and sellers acknowledge that aligning on value will be essential to closing transactions.
Increased competition for quality assets
As buyers become more discerning, especially around profitability and scale, competition has intensified for top-tier agencies. Those who can demonstrate differentiation through technology, consistent margins, and strategic positioning are expected to command a premium.
AI adoption as a new qualifier
A clear shift is emerging: 2025 buyers are not only evaluating financial performance but also looking for proof of AI integration and innovation readiness. Agencies resisting AI implementation may find themselves disadvantaged during due diligence.
Seller Sentiment: Why 2025 May Be the Year to Exit
Among agency founders and operators, the motivations for exploring a sale are diverse:
33% cite strong buyer interest in their niche capabilities
17% believe valuation multiples are currently attractive
Others see 2025 as the right time due to having reached a critical EBITDA scale or a desire for personal or strategic transitions
Still, some remain hesitant. 50% of those not motivated to sell say current valuation multiples don’t justify a transaction, while others feel their business hasn’t yet scaled sufficiently.
Notably, 72% of sellers would prefer a strategic buyer, signaling a continued shift toward acquirers who bring operational synergies and long-term vision—rather than solely financial engineering.
A Year of Opportunity—With a Strategic Lens
Evros’ CEO Andreas Roell emphasized in his foreword that dealmaking success in 2025 will hinge on clearly defined business models, tech-forward capabilities, and transparent value creation strategies. “Buyers are showing patience in identifying quality assets,” Roell notes, “signaling a more strategic buyer universe that evaluates assets beyond financial metrics alone.”
For agency operators considering M&A, the message is clear: optimize your positioning, tighten operations, and lean into transformation. For investors and buyers, 2025 represents a fertile environment—provided the right opportunities emerge.
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