Knight Merger & Acquisition Survey 2025

According to the survey, a significant 63% of respondents are actively seeking M&A opportunities, signaling a proactive approach to expansion and market dominance. This dominant strategy suggests that businesses are keenly aware of the advantages of acquiring new assets and competencies to stay ahead in their respective industries.

On the other hand, only a small fraction, 3%, are adopting a reactive stance, waiting for opportunities to present themselves. This minority approach might indicate a more conservative or resource-constrained position, potentially missing out on timely opportunities that could drive growth.

Interestingly, 10% of participants are focused on 'value' opportunities, prioritizing acquisitions that offer significant upside potential at a reasonable cost. This strategy highlights a more calculated approach, emphasizing strategic investments that promise substantial returns.

Furthermore, 23% of respondents are targeting very specific opportunities, suggesting a tailored approach to M&A. This strategy may reflect businesses that are looking to fill precise gaps in their portfolio or enter niche markets with high barriers to entry.

These results underscore the diverse strategies businesses employ in the M&A arena. While the majority pursue an aggressive acquisition strategy, others are more selective, highlighting the varied risk appetites and strategic goals across industries.

40% of respondents reported completing two acquisitions in the last 12 months, making it the most common response. This suggests a strategic approach to expansion, with companies likely seeking to balance opportunity with market conditions.

Interestingly, 20% of participants completed three or more acquisitions, indicating a more aggressive expansion strategy. These companies might be targeting rapid scale or a buy & build strategy, reflecting a robust appetite for growth.

On the other hand, 23% of respondents reported no acquisitions in the past year. This could reflect cautious strategies due to market volatility. Meanwhile, 17% completed just one acquisition, which could signify targeted growth, or a test of M&A waters.

These insights highlight varied approaches to growth whilst raising questions about the factors influencing these decisions. Are companies with multiple acquisitions experiencing better growth? Are those with no acquisitions missing opportunities, or are they being cautious?

Results show that achieving minimum EBITDA levels is the top acquisition criterion (24%), highlighting the fundamental importance of financial performance.

Quality of personnel follows at 21%, reflecting growing recognition of human capital's value in driving competitive advantage. Organic growth potential (16%) and expertise in new technology or sectors (15%) are also significant priorities, while integration simplicity (11%) and vertical market strength (10%) round out the key considerations.