blogindustry reports 2025

A New Year, A New Hope: 2025 Industry Reports 

Thomas Smale

Thomas Smale

January 22, 2025

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FE International, the leading firm in lower and middle market tech M&A, is proud to announce their semi-annual industry reports. This full suite of industry research reports includes sweeping analysis of global markets as well as detailed snapshots of industry-specific M&A activity.

Global Economic Outlook

Global markets are primed for a record-breaking 2025. Cabinet changes across several of the G20 and accommodative monetary policies signal greater potential for growth across markets and industries.

The incoming US Presidential Administration heavily influences the macroeconomic outlook. The election of Donald Trump is set to bring profound changes to the economic and regulatory landscape of the United States and beyond. In the international arena, President-elect Trump’s trade policies will likely focus on ensuring U.S. dominance in areas such as digital technology and artificial intelligence.

Overall, tax cuts and promises of deregulation, particularly for corporations and high-income earners, should stimulate increased investment and economic activity. Financial markets especially are poised for a potentially transformative period, despite the unusual possibility of across-the-board tariffs announced by the US President-Elect. While the impacts of the proposed tariffs would be considerable for the global economy, the potential imposition of tariffs is more likely the starting point of political negotiations.

Here’s everything you need to know for your industry in 2025:

Artificial Intelligence

AI-focused M&A deals have seen substantial growth in recent years, fueled by the rising demand for technologies like automation and data analysis. Private M&A transactions under $100 million have surged in 2024, driven by demand for niche-specific AI solutions. Smaller AI startups in areas such as content generation, marketing tech, and fintech are attracting attention for their scalable models and ability to fill market gaps. Learn how businesses are acquiring AI capabilities to improve operations, cut costs, and stay competitive in the AI 2025 Report.

Agency and Marketing Solutions

Agency & Digital Marketing solutions are also radically changed by advancements in Generative AI, from content creation and customer service to analytics, optimization, and consumer targeting. These advancements fuel innovation, enabling firms to deliver personalized, data-driven, and scalable solutions at an unprecedented pace. See how these tools are redefining industry standards in the Agency & Marketing 2025 Report.

Cybersecurity

Cybersecurity is increasingly top priority as cyber threats surged in 2024, underscoring the imperative for sophisticated and proactive security strategies. From leveraging AI to orchestrate precision-based attacks to exploiting human vulnerabilities through advanced phishing mechanisms, the threat landscape has become markedly intricate and dynamic. Learn industry outlook in the FinTech & Cybersecurity 2025 Report.

Ecommerce

Ecommerce M&A activity in the lower middle market has demonstrated strong resilience and growth, especially after the recent US election due to the president-elect’s promises of deregulation. Strategic buyers dominate the sector as larger organizations seek growth with more efficient, strategic partnerships. Similarly, private equity firms have shown a significant rise in add-on acquisitions, highlighting their focus on strengthening existing portfolio companies within the space.​ Learn how new policies could drive a stronger market in the Ecommerce 2025 Report.

Educational Technology

The EdTech industry is navigating a landscape marked by significant regulatory challenges, forcing it to adapt and evolve in response to new demands and opportunities. Still, a fundamental shift is occurring in the workforce as companies increasingly prioritize employees with diverse skill sets – particularly in corporate training, professional development, and medical education – leading to growing demand for businesses in those verticals. See the industry outlook in the EdTech 2025 Report.

Enterprise SaaS

Software-as-a-Service (SaaS) refers to businesses that deploy cloud-hosted software applications delivered on a subscription basis, providing businesses with scalable solutions, accessibility, and predictable recurring revenue. ​SaaS M&A is poised for continued growth driven by innovation, global expansion, and the increasing demand for specialized software solutions. Learn key trends – and challenges – in the SaaS 2025 Report.

Financial Technology

The FinTech industry is bolstered by both interest rate cuts and the recent U.S. elections, resulting in record-high performance in public markets. Firms are also harnessing AI to enhance operational efficiency and reduce costs, as exemplified by Klarna’s implementation of AI to minimize workforce requirements. The industry remains attractive due to its innovative potential for international commerce in the face of ongoing geopolitical conflicts and changing global regulatory standards. See the industry outlook in the FinTech & Cybersecurity 2025 Report.

Marketplace Applications

The Marketplace Apps sector contains both the application marketplaces, like Salesforce or the Apple App Store, as well as the in-house and third-party software tools available within those marketplaces. The popularity of the sector among consumers had a ripple effect on B2B and enterprise application marketplaces, which have seen equally tremendous growth in the last decade. Learn which tools are the most in demand in the Marketplace Apps 2025 Report.

With decades of experience, FE International can provide the expertise and guidance founders and investors need to achieve their financial goals. The firm helps businesses prepare for a successful exit by conducting a thorough valuation, suggesting optimizations for operations and profitability, identifying areas for potential growth, and crafting a compelling story for investors.

Get a free valuation today.

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