News Summary
Los Angeles is experiencing a slowdown in mergers and acquisitions as geopolitical tensions and unstable trade policies create a cautious environment. Despite the eagerness of local private equity and finance dealmakers, the M&A market is characterized by longer deal cycles and a focus on strategic considerations. The recent M&A Awards celebrated significant transactions, but the industrial and renewable energy sectors are feeling the impacts of shifting policies. Industry experts remain optimistic for a market recovery as pent-up demand for deal-making persists.
Los Angeles is witnessing a significant slowdown in mergers and acquisitions (M&A) activity as the year 2025 unfolds, largely due to ongoing geopolitical tensions and unstable U.S. trade policies under President Trump. This cautious environment comes despite a pronounced eagerness from local private equity and finance dealmakers, who have been anticipating more vibrant market conditions following several years of subdued deal-making during the Covid-19 pandemic.
The Los Angeles Business Journal recently hosted its inaugural M&A Awards for 2025, celebrating noteworthy transactions and industry contributors. Key awards included ‘Deal of the Year’ for M&A transactions valued at $1 billion or more and ‘Breakthrough Deal of the Year’. The ceremony highlighted industry veterans, including Lloyd Greif, head of Greif & Co., who received the M&A Industry Icon Award, underscoring the value of advisory roles in helping clients navigate their first major deals.
The M&A market in Los Angeles is currently characterized by increasing caution. Deal cycles are taking longer to complete, and private equity firms are seeking attractive pricing amid a landscape that has seen a notable accumulation of private equity “dry powder”. Experts have pointed out that upcoming interest rate cuts by the Federal Reserve may help improve the overall market conditions, particularly as the central bank has reduced interest rates by 25 basis points, signaling a preference for economic stabilization.
While firms across the Los Angeles area are engaging in deal-making across various sectors, many are maintaining a degree of indifference to market conditions when pursuing viable business opportunities. Previous examples of significant M&A transactions include the $18.25 billion acquisition of SRS Distribution by Home Depot and E.l.f. Beauty’s $1 billion acquisition of the Rhode beauty brand, which was owned by Hailey Bieber.
However, the path forward for M&A activity faces substantial challenges due to shifting legislative landscapes and evolving trade policies. The industrial sector, in particular, is experiencing a pause in activity as these changes loom large. The renewable energy industry is also feeling the ramifications of recent legislative measures, notably the One Big Beautiful Bill Act, which has contributed to a significant slowdown in deal-making.
In response to these risks and uncertainties, private equity dealmakers are adopting a more strategic approach to M&A, exercising careful consideration in their transaction processes. Many industry observers have noted that the current atmosphere is reminiscent of one of the longest downturns in M&A activity since World War II. The cautious stance being taken includes a requirement for more extensive groundwork in deal preparation, as firms work to navigate this evolving environment.
Despite the cautious outlook, industry experts express optimism, predicting that pent-up demand for M&A activity will eventually lead to a resurgence post-2025. This perspective suggests a belief in an inevitable market recovery, as dealmakers remain vigilant while preparing for future opportunities in a potentially more favorable environment.
As Los Angeles grapples with the complexities of the current M&A landscape, the intersection of geopolitical factors and economic uncertainty continues to shape the approaches taken by finance professionals as they seek to leverage opportunities amidst a cautious climate.
Deeper Dive: News & Info About This Topic
HERE Resources
Matt Kiel Recognized as Emerging Leader at M&A Awards
Matt Kiel Honored as Emerging Leader at M&A Awards
Global Markets Rally on Eased U.S. Inflation Expectations
Compass Reports Record Financial Results Defying Housing Market Trends
Composition Wealth Expands with California and Ohio Acquisitions
Additional Resources
- New York Post: LA Mansion Asking $125M Stands to Break Neighborhood Record
- Wikipedia: Mergers and Acquisitions
- Patch: Trump Administration Must Restore $500M Grants to UCLA, Judge Rules
- Google Search: UCLA grants
- Los Angeles Business Journal: Giving Tops $650M for Wildfire Victims
- Google Scholar: Los Angeles mergers and acquisitions
- Los Angeles Times: Federal Judge Restores UCLA NIH Grants
- Encyclopedia Britannica: Mergers and Acquisitions
- Hollywood Reporter: Phil Rosenthal’s Los Angeles Diner Max and Helen
- Google News: Phil Rosenthal Diner
Author: STAFF HERE LOS ANGELES WRITER
LOS ANGELES STAFF WRITER The LOS ANGELES STAFF WRITER represents the experienced team at HERELosAngeles.com, your go-to source for actionable local news and information in Los Angeles, Los Angeles County, and beyond, specializing in "news you can use" with coverage of product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise from years of dedicated reporting and strong community input, including local press releases and business updates, while delivering top reporting on high-value events like the Academy Awards, LA Auto Show, and Los Angeles Marathon, extending coverage to key organizations such as the Los Angeles Area Chamber of Commerce and the Los Angeles Tourism & Convention Board, plus leading businesses in entertainment and technology like Warner Bros. and SpaceX, and as part of the broader HERE network including HEREAnaheim.com , HERECostaMesa.com , HEREHuntingtonBeach.com , and HERESantaAna.com , providing comprehensive, credible insights into Southern California's dynamic landscape. HERE Anaheim HERE Beverly Hills HERE Coronado HERE Costa Mesa HERE Hollywood HERE Huntington Beach HERE Long Beach HERE Los Angeles HERE Mission Viejo HERE San Diego HERE Santa Ana
