Q4 2025 Distribution M&A Report: Selective but Still Healthy

Summary: In Q4 2025, distribution M&A activity remained steady despite some moderation. This report by KSM’s investment banking team, Charter Capital Partners, highlights key market trends and includes practical insights for middle-market companies navigating today’s environment.

In the fourth quarter of 2025, M&A activity in the distribution sector moderated but remained fundamentally healthy, with 74 completed deals. Buyers increasingly focused on quality, scalability, and defensible margins. Strategic acquirers led transaction activity, while private equity investors became more selective, prioritizing platform-ready businesses with clear value creation opportunities.

The Q4 2025 Distribution M&A Report analyzes distribution M&A trends, valuation dynamics, buyer activity, and financing conditions during the quarter. The report also features insights from our investment banking team’s recapitalization advisory work for Allied Vision Group, offering practical perspective on how middle-market distribution companies are navigating today’s distribution market.

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