The M&A distinction that matters: Timing the business, not the market

For each patrons and sellers of corporations, timing the deal is a key success criterion for its success. Rhiannon Ludlow, director at TH International Capital, outlines why that timing needs to be centred round the enterprise – and not the market.

Throughout world know-how M&A cycles, boards and founders typically fall again on the similar line, they’ll think about a transaction as soon as “the market improves.” It sounds wise on the floor, however in observe it often misses the level.

Latest knowledge reveals that this mindset blurs an vital distinction – between ready to time the market and selecting the proper second for the enterprise itself. These are two very completely different selections and complicated them will be pricey.

Markets transfer in unpredictable methods. Financial situations, rates of interest, sector preferences and purchaser sentiment all shift in response to forces effectively past anybody firm’s management. What’s controllable, nonetheless, is a enterprise’s personal readiness – its operational power, monetary transparency and strategic positioning.

Market Volatility and M&A Exercise

International M&A exercise has been uneven since the pandemic highs. After document ranges in 2021, deal volumes and values fell sharply in 2022 as macroeconomic pressures constructed, pushing exercise again towards extra typical, pre-pandemic ranges.

Extra just lately, in the first half of 2025, world M&A volumes continued to fall at the same time as deal values rose, signaling a market outlined by fewer, bigger transactions.

The takeaway is evident: patrons are nonetheless lively, however way more selective. In this sort of surroundings, outcomes hinge much less on making an attempt to time the market and extra on how effectively ready the enterprise really is.

Ready Companies Capturing Alternative

Accenture’s acquisition technique provides a transparent instance of execution-driven M&A in know-how providers. In 2022 alone, the agency accomplished 23 acquisitions throughout digital, cloud, analytics, sustainability and associated capabilities, reinforcing a long-standing, capability-led development technique moderately than ready for very best market situations.

This sample factors to a easy actuality; strategic acquirers are likely to give attention to companies that are operationally prepared and strategically complementary, moderately than ready for good macro situations.

Accenture’s strategy displays confidence in execution and long-term integration worth, even when short-term valuations fluctuate.

An identical dynamic will be seen in know-how and IT providers with Capgemini’s 2025 acquisition of WNS for about $3.3 billion. By bringing WNS’s BPM and AI-led capabilities into the group, Capgemini doubled down on strengthening its market place and functionality footprint, regardless of ongoing market uncertainty.

The Pitfalls of Market Timing

Companies that delay partaking with patrons or advisors in the hope of improved sector metrics typically discover that purchaser expectations have shifted by the time they return to market.

As broader dealmaking developments present, volumes might ease at the same time as deal values maintain up, signalling a purchaser choice for high-quality belongings in a extra unsure financial surroundings. This selectivity has two implications:

1) Valuation upside alone might not materialise just because markets “enhance”

2) Readiness in monetary reporting, administration depth and strategic readability turns into a differentiator

The M&A Readiness Framework

As an alternative of treating a sale as a one-time occasion, prime performers deal with it as a everlasting state of operational excellence.

Preparation in these areas doesn’t compel a transaction; it creates optionality. When alternatives emerge, whether or not via unsolicited curiosity or a change in purchaser demand, a well-prepared and credible enterprise is positioned to maneuver decisively.

The Key Takeaway

Timing the enterprise strategically is a deliberate selection, as M&A cycles constantly present that making an attempt to time the market is inherently speculative. Moreover, macroeconomic situations will at all times evolve past the management of particular person administration groups. Whereas broader market enhancements can create extra supportive deal environments, the most dependable driver of robust transactional outcomes is the underlying readiness of the enterprise itself.

Leaders who give attention to operational power, monetary transparency and clear strategic positioning create situations for worth seize no matter market volatility. In doing so, they protect optionality and retain company over their transaction timelines, moderately than permitting exterior market cycles to dictate outcomes.

At TH International Capital, we work with founders and administration groups effectively earlier than a transaction is imminent – typically via development advisory and readiness planning moderately than a direct sale course of. This early engagement strengthens fundamentals, preserves flexibility and ensures companies are ready to behave decisively when market situations or strategic alternatives change.