GF Data® has released its Q3 2025 M&A and Leverage Reports, offering an updated view of private equity–sponsored transactions completed through September 30, 2025. The latest data shows continued softness in middle-market deal activity. Seasonal patterns and persistent caution among buyers remain key factors. Higher financing costs are also influencing how opportunities are evaluated.
In the third quarter, contributing private equity firms reported 66 completed transactions. This is a decline of about 20% from the 83 deals recorded in the second quarter. Year to date, volume has reached 211 transactions, which represents a 27% drop compared to the same period in 2024.
“The third quarter reflected the typical summer slowdown, compounded by continued scrutiny from lenders and investors,” said Bob Dunn, managing director of GF Data. “We’re seeing buyers remain disciplined in a market still adjusting to higher financing costs and varied deal quality.”
Despite the decline in deal count, valuation performance improved. Average purchase price multiples rose to 7.5x trailing 12-month adjusted EBITDA, up from 6.9x in Q2. Renewed activity in leveraged recapitalizations and growth financings supported this increase. These deals often involved larger, better-capitalized companies that can support higher leverage.
The M&A and Leverage Reports are available exclusively to GF Data subscribers.