For many family and founder-owned businesses, the decision to sell signals a significant life transition. As you contemplate this pivotal moment, understanding the current M&A landscape becomes crucial. The Smart Business Atlanta Dealmakers Conference 2025 recently convened savvy M&A professionals, business owners, and financial advisors, offering valuable insights into the evolving world of mergers and acquisitions. Steven Hutchison and AJ Alexander, Principals at Walden M&A, attended the conference and shared their takeaways and perspectives on the key themes and opportunities presented for business owners considering a sale or acquisition.
A Dynamic and Optimistic Market
Both Steven Hutchison and AJ Alexander noted the palpable energy in the room, a feeling Alexander described as “electric.” He remarked, “Every conversation we had was very open & enthusiastic. There was a wide range of business professionals who touch the M&A space – it was a great representation of people in the field.” This diverse gathering underscored the robust activity within the M&A industry.
Hutchison, attending his first Smart Business Atlanta Dealmakers Conference, found the format particularly effective. “I really enjoyed the way it segmented networking, panel discussion, networking, panel discussion. By alternating, it gave attendees breaks to go talk to people. I also appreciated the open seating so I could move around and sit at different tables to meet different people.” This structure fostered genuine connections and facilitated a free exchange of ideas.
A recurring sentiment throughout the conference was one of optimism. “Everything was trending in the right direction. It was very positive, and there was optimism in the air,” said Alexander. This positive outlook is supported by banks that are ready to lend and eager to deploy capital, even amid concerns about tariffs and inflation. The availability of capital signals a healthy environment for deal-making.
The Emphasis on Preparation and Predictability
Walden M&A’s President, John Phillips, participated in a panel discussion titled “Deal Prep: What Every Dealmaker Needs to Know About Readying a Company for Sale or Acquisition.” This session provided critical insights into the meticulous preparation required for successful M&A transactions, a cornerstone of Walden M&A’s approach, emphasizing proactive planning to maximize value and minimize unforeseen challenges.
A key theme emerging from the conference was the heightened importance of preparation and due diligence. While capital is available, lenders and buyers are more discerning. Alexander highlighted one panelist, Nathaniel Wilson of Wilson Construction Management, who emphasized preparing books and performing a quality of earnings assessment before going to market. Alexander stated, “We saw a lot of business owners who had successful sell-side transactions build momentum early on just to be prepared.”
Lenders are increasingly looking for businesses with a proven track record of profitability and sustained operations. Alexander noted, “The two metrics they’re looking for are businesses in operation for five to 10 years and clear profitability.” This shift means that a “pitch deck and a hope and a prayer” will no longer suffice in today’s market. Buyers are seeking predictability and low risk. Hutchison concurred, “They’ve got dry powder to lend, yet they’re being more cautious on who they’re lending to.” The term “risk averse” was specifically used, underscoring this trend.
This increased scrutiny means business owners must tell a clear financial story. “Preparation, preparation, preparation, having your numbers in good working order, having those relationships with the accounting firms to ensure everything is sorted, the story is being clearly told,” Alexander reiterated, highlighting the critical nature of meticulous financial readiness.
Evolving Deal Structures and the Rise of Private Credit
The conference also shed light on evolving deal structures designed to create optimal outcomes for sellers. Alexander observed founders exploring options such as rollover equity, seller notes, and earnouts. He explained, “The win-win exit strategy was the rollover equity,” referring to scenarios where a business owner retains some shares in the new entity as part of their package.
Another significant trend discussed was the rise of private credit. Instead of traditional routes like SBA loans or non-control venture capital, more business owners are turning to private credit. While it carries higher interest, it is debt-based, meaning owners do not have to give up a piece of their company. Hutchison added, “You’re seeing private equity permeate the lower markets, and compete with the SBAs and things of that nature.”
Deeper Due Diligence and the “Buy and Hold” Mentality
Buyers are undertaking a more intense vetting process. George Pfeil, of Applied Technical Services, completed over 40 acquisitions in 10 years and shared his approach of spending an additional three to six months with potential targets, opting for multiple site visits and numerous dinners. He was a big believer in intimately knowing the business they were going to buy.
This deep dive extends to private equity groups, many of whom are adopting a “buy and hold” strategy rather than a “buy and flip” approach. Hutchison explained the rationale: “We’re going to hold this for a while, and we want to maintain the existing infrastructure. We want the acquisition event to be lackluster and non-impactful, meaning it should not be disruptive to the people within the organization. They’re doing the due diligence; they’re doing the quality of earnings because they’re doing this deeper dive into the business.” These buyers aim to acquire healthy, well-functioning businesses and accelerate their growth without disruption.
A notable new trend highlighted was the increasing use of representation and warranty (R&W) insurance in middle-market deals. Initially common in multi-billion-dollar acquisitions, R&W insurance is now being seen in deals as low as $10 million. This insurance policy, taken out by the seller, covers any loss if the deal falls through. Hutchison noted, “It’s now part of your M&A team on some of these larger, let’s say 10 million and above deals.” Alexander described it as a “sophisticated deal mechanic.”
Beyond the Deal: Legacy, Culture, and Networking
Beyond the financial mechanics, the conference also explored the human element of M&A. Steven Hutchison found a meaningful connection with a firm specializing in helping faith-based businesses properly donate and tithe pre-tax during a transaction. This unique service addresses an interesting financial consideration for some business owners.
The discussion on family and values also resonated deeply with Hutchison. A panel on a fourth-generation commercial real estate family business emphasized the importance of not forgetting priorities and keeping the family involved in the journey. “It was all about family, faith, and making it part of the journey, even though it’s out of the same enterprise,” Hutchison reflected.
The networking opportunities were equally impactful. “I had three leads out of here,” Hutchison shared enthusiastically. Alexander also connected with buyers and invited business owners contemplating a sale, underscoring the value of building relationships.
The Smart Business Atlanta Dealmakers Conference 2025 painted a clear picture of a dynamic M&A market. While optimism abounds, success hinges on thorough preparation, a clear understanding of evolving deal structures, and the ability to navigate increasingly sophisticated vetting processes. For Walden M&A, the conference reaffirmed the importance of their comprehensive approach, combining deep market knowledge with a relational focus to guide family and founder-owned businesses toward their ideal exit.
