The 2025 M&A Deal Terms Study from SRS Acquiom highlights significant changes in private-target acquisition structures and terms, analyzing over 2,200 transactions worth $505 billion that closed between 2019 and 2024.
Among key findings, 2024 saw a threefold increase in “jumbo” transactions (valued over $750 million) compared to 2023, while maintaining a median return on investment of 2.5x. The study notes a continued rise in median exit timing for M&A targets and increased activity from financial buyers, including private equity firms. All-cash deals saw modest increases, particularly in Q2 and Q3.
The report also identifies seller-favorable shifts in earnout and indemnification provisions. While earnouts remained slightly above historical norms of 20% for non-life sciences deals, they showed shorter performance periods with none exceeding four years in 2024. Additionally, the study notes an increase in “walk-away” deals where seller’s representations and warranties do not survive closing.
For the complete report analyzing over 150 deal terms and market trend analysis, visit SRS Acquiom’s website.
