Lower middle-market acquirors remained selective in Q3 2025 amid tariff uncertainty and tighter financing conditions. High-quality companies with domestic operations and resilient demand continued to attract strong interest.

Approximately 2,012 transactions were reported through 9/30/25, down slightly from the same period in 2024, but broadly consistent with historical norms. The ISM PMI averaged 48.6, signaling contraction but gradual stabilization.

Manufacturers continued prioritizing capex tied to automation, digital transformation, and domestic capacity. Looking ahead, sentiment has strengthened, and modest growth is expected into 2026 despite ongoing policy and cost pressures.

Read the full Q3 Industrial Manufacturing Report to learn more.