ABF Journal Pulse | First Quarter, 2025

ACQUISITION FINANCING

The case studies, deals, sectors and issues driving middle market acquisition financing moving into a market posed for M&A growth.

Fueling the 2025 Dealmaker Ecosystem: Strategic Bizdev for Growth and Connection

By Miller Harpring, Managing Director, Sawbux

In 2024, the U.S. dealmaker ecosystem—private equity (PE), investment banking (IB), specialty finance, turnaround advisors, and legal pros—powered $1.2 trillion in M&A, a 15% jump from 2023 (PitchBook). For 2025, we’re staring down a $1.4 trillion pipeline, and it’s all about teamwork. At Sawbux, we’ve juiced up client mandates with targeted bizdev—think marketing and sales tying PE’s cash, IB’s smarts, lenders’ flexibility, advisors’ fixes, and legal’s precision into a dealmaking machine. Here’s how to widen your net and snag more wins in 2025.

Why Bizdev Matters Now

Teamwork was the secret sauce for 60% of 2024’s $500M-plus deals (McKinsey)—PE hunted targets, IB shaped the deals, lenders bankrolled, advisors patched holes, and legal sealed the paperwork. But 40% of firms are watching pipelines dry up because they’re stuck in silos (Deloitte). Bizdev’s the bridge, boosting referrals and nailing closings. Let’s break it down.

Strategies to Grow Your Network

Map Your Ecosystem

Start with who you know—clients, co-investors, co-counsel—and match them to 2024’s 3,200 M&A deals (S&P Global). PE teams up with IB for carve-outs, lenders pair with advisors for distress, and legal links with PE for diligence. Warm networks bump conversions 25%—$50M deals can balloon to $500M (Bain & Company). Step one: list 50 contacts by Q2—10 per segment. Host a “2025 Deal Trends” roundtable; 30% show up ready to talk shop.

Use Thought Leadership

Content’s your megaphone. In 2024, 70% of PE sniffed out targets via sharp insights (Preqin)—IB, lenders, and advisors can play that game too. Drop pieces like “AI’s $20B M&A Impact” or “Distressed Debt’s $15B Opportunity.” Data-driven LinkedIn posts grab 40% more eyes, and webinars speed $100M mandates by 20% (HubSpot). Kick off Q1—PE tackles SaaS, IB hits SPACs, lenders push unitranche, advisors dig into turnarounds, legal nails diligence. Share on X and trade pubs; 10% bite.

Foster Cross-Referrals

Collaboration keeps the pipeline humming. In 2024, 35% of $200M-$500M deals came from referrals (EY)—PE with IB, lenders with advisors, legal with PE. Commit to five intros each way. Referrals close 30% faster and rake in 15% higher fees—$10M jumps to $50M (HBR). By March, lock in 20 partners, host a $5K ACG dinner, and track it in a CRM—20% turn into $25M by H2.

Target Mid-Market

Mid-market deals ($50M-$500M firms) owned 55% of 2024’s action (PitchBook). PE rolls up, IB pitches exits, lenders bring ABL, advisors fix messes, legal runs diligence—stick here, not the mega or tiny stuff. These hit 8-10x EBITDA—18% IRR for PE, 12% yields for lenders (BDO)—$100M can scale to $1B. List 100 targets—20 per sector (tech, healthcare, energy). PE floats roll-up plans, IB drops exit ideas, lenders dangle capital—15% spark $75M chats.

Optimize Events

Conferences are deal sparkers. In 2024, 25% of $1B-plus deals kicked off at ACG, IMN, or SuperReturn (Forbes). PE scouts targets, IB sponsors, lenders pitch mezz, advisors flag distress, legal counsels—then you close face-to-face. Event deals close 20% stronger—$50M turns into $200M in 90 days (Eventbrite). Hit Q2’s big three, book 15 meetings—five per segment—and follow up with next-steps decks; 10% lock $30M by Q3.

Considerations for Execution

Winning takes grit and smarts—here’s what to watch:

  • Data-Driven: Trends rule—70% of top firms track $100M pipelines with CRM (Salesforce). Aim for 15% conversions and 20% referral growth; gut calls waste 30% (Gartner).
  • Timely Action: Markets move quick—2024’s 15% M&A spike proves it. Early birds snag 25% more mandates (BCG)—start Q1, tweak Q2.
  • Risk Management: Volatility’s a beast—Nasdaq’s 15% 2024 swings tanked tech 20% (Bloomberg). Build 10% buffers, over-target by 20%—$50M risks flip to $75M wins.
  • Tech Tools: AI CRMs boosted 2024 outreach 30% (HubSpot). PE tracks targets, IB hunts sponsors, lenders chase borrowers—$5K spins up $50M pipelines.

Takeaways for the Ecosystem

A $1.4 trillion M&A playground’s waiting in 2025—grab your piece. PE: chase mid-market roll-ups—50 firms, 10 intros, $200M in play. IB: pitch ecosystem deals—20 leads, $150M mandates. Lenders: roll out ABL and mezz for $50M-$200M—15% of a $15B distressed pool’s up for grabs (S&P Global). Advisors: tie PE to lenders—10 referrals, $100M turnarounds. Legal: back everyone with diligence—20 contacts, $75M fees. At Sawbux, we’ve seen ecosystem juice deliver—aim for 600 deals and charge ahead.

Featured Stories

Sector Spotlights

Featured Case Study

The Aaron’s Company, founded in 1955, leads the lease-to-own industry with over 1,200 stores and a strong e-commerce platform across the U.S. and Canada. In 2022, it acquired BrandsMart U.S.A., enhancing its market reach. In 2025, facing a complex take-private acquisition, Aaron’s partnered with Second Avenue Capital Partners (SACP). SACP provided a tailored lending solution, ensuring liquidity, stability, and growth potential, seamlessly guiding Aaron’s into private ownership with expertise and precision.