General Overview: M&A Activity in the First Half of 2025
Deal activity through the first half of 2025 has reflected the cautious but deliberate momentum that defined the second half of 2024. While acquirers have not moved with the exuberance seen during the last peak cycle, they have begun to lean back into strategic growth via acquisition with increased clarity around inflation stabilization, interest rate ceilings, and evolving sector-specific outlooks. Most activity has occurred among disciplined buyers with ready capital, clean balance sheets, and specific post-integration objectives. Strategic rationale has returned to the center of dealmaking.
Capital Positioning and Cost of Funds
Acquirers moved forward more decisively in H1 2025 as capital costs began to normalize. Although rates remain materially higher than the lows of 2021, borrowers and buyers have fully absorbed the new base-level assumptions. What shifted most this year wasn’t rate policy, but sentiment. Sponsors and strategics now assess deal opportunities through a recalibrated lens rather than holding back in anticipation of rate cuts. As a result, cash-heavy balance sheets, fixed-rate facilities, and dry powder in private equity continued to dictate which buyers remained competitive. Many mid-market deals that cleared in Q2 hinged on creative structuring that locked in short-term pricing advantages or leveraged seller notes and earnouts in sectors with moderate risk exposure.
Sector Dynamics and Strategic Concentration
Rather than chasing horizontal scale, dealmakers have focused heavily on vertical integration, IP acquisition, and operational synergies that address margin compression. Healthcare services, industrial automation, specialty logistics, and niche software platforms stood out as areas of concentrated interest. Notably, carve-out activity within multinational conglomerates picked up in the first half, particularly in legacy manufacturing and consumer product lines, as global firms shifted away from complex or low-margin verticals to focus on faster-growing or more modular businesses. Corporate sellers, particularly in the S&P 500, appeared more willing to shed non-core units than in the previous two years, especially when those sales could unlock internal capital to deploy into AI, compliance modernization, or decarbonization efforts.
Valuation, Due Diligence, and Deal Timelines
While valuation expectations began to align more closely in Q2, diligence timelines remained extended. Buyers continued scrutinizing supplier relationships, tech stack vulnerability, and talent risk at a granular level – particularly in services and lower middle-market tech targets. Despite stronger alignment on pricing, fewer buyers waived reps-and-warranties coverage or expedited closing periods, even when competition among bidders was stiff. The weight of operational risk has played a larger role in valuation modeling than in recent years. Firms that prepared well for diligence, with clean trailing financials and actionable forecasts, consistently closed above-market multiples, reinforcing the premium associated with deal readiness.
The year’s second half appears poised for a moderate uptick in M&A activity, particularly among corporate buyers seeking to rationalize product portfolios and improve operational leverage before the 2026 budgeting cycle begins. With equity markets remaining resilient and the cost of capital no longer in flux, internal growth alone will not satisfy most growth mandates through year-end.
Navigating this environment requires more than transactional readiness. Appraisal Economics offers a full suite of M&A-related valuation services for those seeking informed, defensible insights into asset value, risk alignment, and deal preparedness.
Comeback For Nuclear Energy
Nuclear energy is re-emerging as a strategic solution to the world’s most pressing challenges: climate change, energy security, and skyrocketing electricity demand. Once sidelined due to cost, safety concerns, and political resistance, nuclear is now being viewed with renewed pragmatism. Governments, investors, and engineers are giving it another look; this time, the momentum is global.
The Growth Story
After years of stagnation, nuclear investment is finally picking up. According to the International Energy Agency (IEA), global investment in atomic energy reached approximately $65 billion in 2023, nearly double the level a decade ago. This includes spending on new builds, plant life extensions, and upgrades.
As of February 2025, around 62 nuclear reactors are under construction in 15 countries worldwide. They represent more than 70 GW of capacity, one of the highest levels in the last 30 years, with approximately half of this capacity located in China. China’s success lies in standardized designs and centralized financing, allowing it to deliver reactors in less than five years. A sharp contrast to the over-budget and delayed builds in the West.
In the United States, regulatory reforms and new executive action are laying the groundwork for nuclear expansion. Streamlined licensing processes and the Combined Construction and Operating Licence (COL) framework have lowered barriers to new builds, with some costs supported by the Department of Energy. In May 2025, President Donald Trump signed executive orders to restore U.S. nuclear leadership, targeting a fourfold increase in capacity from 100 GWe to 400 GWe by 2050. The plan includes 5 GWe in reactor uprates and 10 large reactors with completed designs under construction by 2030. One notable project includes plans to build at least 1 gigawatt of advanced nuclear capacity in upstate New York, announced by Governor Kathy Hochul in 2025 as part of the state’s zero-emissions electricity mandate.
In Europe, several countries, including France, Sweden, and the UK, are extending the lifespans of existing plants and planning new ones. Meanwhile, India is revising regulations to encourage nuclear investment, while Japan is working to restart reactors despite continued public concern over waste disposal.
Why The Shift?
Nuclear energy delivers what the energy transition urgently needs- clean, reliable, and scalable power. Unlike solar and wind, nuclear provides steady electricity around the clock, helping stabilize grids as more intermittent renewables come online.
Nuclear power also offers low lifecycle emissions, making it one of the most climate-friendly energy sources. It is comparable to wind and far cleaner than gas or coal. Once built, nuclear plants operate for decades with predictable, low operating costs, offering long-term price stability in volatile energy markets.
Additionally, nuclear is space-efficient and resource-light, requiring far less land and raw materials per megawatt than most renewables. New technologies like small modular reactors promise greater flexibility, faster deployment, and lower upfront costs.
What The Future Holds
Global nuclear investment is projected to rise from $65B to $70B by 2030 under current policy trends, putting capacity on track to grow by 50% to 650 GW by 2050. Under more substantial climate commitments, annual investment could climb to $120B–$150B, potentially more than doubling capacity to over 1,000 GW. SMRs are expected to see accelerated deployment, with investment forecast to increase fivefold by 2030 and installed capacity reaching 120 GW across 1,000+ units by mid-century. China is set to lead the global expansion, likely surpassing the U.S. by 2030, while advanced economies may regain ground through new builds and SMR innovation. A more secure and diversified uranium supply chain and workforce expansion will be essential to realizing this nuclear resurgence.
Meanwhile, AI-driven energy demand is drawing Big Tech into the nuclear space. Amazon has invested $500 million in X-energy, Meta has signed a 20-year atomic power purchase agreement, and Microsoft is exploring the revival of Three Mile Island to power its infrastructure. As digital growth collides with climate imperatives, nuclear rapidly positions itself as the backbone of a reliable, low-carbon energy future.
For nuclear and other power plant valuation services backed by decades of energy sector expertise, Appraisal Economics delivers clarity in a rapidly evolving landscape.
Update on Offshore Wind and Solar Progress (on the Ocean)
The offshore renewable energy sector is experiencing rapid growth. New hybrid wind-solar projects are marking an evolution in how clean energy is generated at sea. Recent advancements in both infrastructure and policy are shaping a more integrated and resilient offshore energy future.
Surge in Offshore Wind Development
Offshore wind continues to expand globally, with the U.K. leading Europe in approvals and capacity. The U.K. government recently greenlit the Mona Offshore Wind Farm in the Irish Sea, expected to generate enough electricity to power more than 1 million homes. This project will be the region’s most significant and crucial part of the U.K.’s goal to reach 50 GW offshore wind capacity by 2030.
In the U.S., the Vineyard Wind project off Massachusetts’ Nantucket faces criticism over communication failures and environmental concerns. Once celebrated as the country’s first commercial-scale offshore wind project, critics argue that community engagement and transparency missteps could threaten public support for future projects. However, manufacturing and construction efforts are still progressing. Companies like Seatrium have updated progress on turbine substructures for the U.S. and North Sea markets, reinforcing supply chain growth.
Offshore Solar Emerges as a Key Complement
The Netherlands is leading the charge on integrating offshore solar with wind. The Hollandse Kust Noord project will soon be home to the world’s first hybrid offshore wind-solar power plant. The floating solar array is already built and ready for tow-out and installation, enabling dual energy generation from the same site.
To ensure this emerging sector scales responsibly, Dutch research institute Deltares has released new offshore solar certification recommendations focusing on structural stability, anchoring, and corrosion resistance. These challenges differ significantly from land-based solar systems.
Why Hybrid Offshore Systems Matter
By combining wind and solar, operators can optimize production across timeframes. Solar during the day, wind often peaking at night or in winter. Co-location also reduces the cost of subsea cabling, transformers, and transmission to shore. Additionally, environmental impact is minimized by sharing ocean space already disturbed by turbines.
What Next?
Despite momentum, political headwinds remain. In the U.S., the Trump administration’s rollback of clean energy policies and Congressional opposition led to stalled investments and the loss of thousands of wind-sector jobs. Recovery is underway, but future stability will depend on consistent policy, permitting clarity, and public engagement.
With hybrid projects now being deployed, the offshore energy landscape is transforming. The ocean is no longer just a frontier for wind. It’s becoming a multi-source powerhouse for sustainable energy.
Navigating the evolving offshore wind and solar landscape requires deep industry insight. For renewable energy valuations that reflect today’s dynamic market, Appraisal Economics is here to help.
Malls Converting into Healthcare Centers / Hospitals
A nationwide trend is reshaping the fate of dying retail centers by repurposing them into sprawling healthcare campuses. As traditional malls struggle with declining foot traffic and high vacancy rates, health systems are breathing new life into these sites by converting them into outpatient clinics, medical malls, and specialty care hubs.
Why Malls Make Smart Medical Spaces
Several factors make former malls attractive options for healthcare:
- Location and accessibility: Malls are typically located in high‑traffic zones with ample parking, road visibility, public transit access, and proximity to population centers. These are all ideal for patient access.
- Size and structure: Large, open floor plates with minimal internal columns, plenty of utilities and HVAC capacity, high ceilings, and structural flexibility are well‑suited to medical equipment, exam rooms, X‑ray and RI installations, and outpatient surgery.
- Faster and cheaper setup: Retrofits require less time than ground‑up construction. Because many malls already have zoning clearance and infrastructure, essential permits are faster to secure, often shaving off months of lead time.
Case Studies in Conversion
- One Hundred Oaks Mall in Nashville was repurposed into a medical mall. Vanderbilt University Medical Center occupies the second floor, while the first floor remains retail space. Near-full occupancy demonstrates the model’s success.
- At Exton Square Mall in Pennsylvania, Main Line Health invested $4.5 million to convert 32,000 sq ft into an ambulatory care center featuring advanced MRI suites.
- Blue Hen Mall in Dover, Delaware, has been fully converted into a medical and government services complex. It is now home to Bayhealth outpatient clinics, VA facilities, and state offices.
Drivers Behind the Surge
- Pandemic‑accelerated decline of malls paired with a surge in outpatient care demand has aligned healthcare needs with retail real estate availability.
- Healthcare systems keen to reduce capital costs favor conversions over new builds, especially given rising construction and lending expenses.
- Patients now expect retail‑like convenience in care delivery, including accessible parking, walk‑in clinics, and integrated pharmacies/diagnostics in one location.
Design & Planning Challenges
Converting a retail site to medical use involves hurdles such as:
- Wayfinding and layout: Long corridors and maze‑like interiors require redesign to ensure clarity for patients and staff.
- Utility upgrades: Medical-grade electrical, HVAC, backup generators, plumbing, and sterile air systems often require upgrades in shell structures not initially built for such intensity.
- Envelope/hardware issues: Retail facades and roofs may not meet healthcare moisture and sanitation standards, requiring careful remediation.
Community Impact & Economic Benefits
These conversions bring tangible community uplift:
- Revitalizing underutilized real estate churns out jobs from construction through long‑term facility staffing and stabilizes struggling malls.
- Medical malls serve healthcare‑underserved areas, especially Medium‑ and Class B/C malls in historically disinvested communities that suddenly gain access to primary care, imaging, women’s health, dialysis, and therapy.
At least 32 enclosed U.S. malls have already been transformed, from full medical malls to partial conversions, and their evolution is only accelerating.
Forward‑thinking developers and health systems now envision mixed‑use campuses. This means clinics, wellness gardens, telehealth centers, pharmacies, ancillary retail, and fitness under one roof. This hybrid model reimagines care delivery as community‑centric, convenient, and cost‑effective.
Transforming malls into medical hubs is more than a clever reuse. It’s a strategic evolution that meets real estate pragmatism and a population’s demand for accessible, outpatient‑focused care. As retail continues shrinking and healthcare leans toward convenience and decentralization, these adaptive medical malls offer a promising roadmap for revitalized space, reimagined purpose, and renewed community impact.
For accurate, insight-driven valuations across the healthcare sector, including emerging facility types, Appraisal Economics is here to help!
Hard Seltzers in The Beverage Industry
The global beverage industry has experienced a significant transformation in recent years due to the rapid rise of hard seltzers. These fizzy and often fruit-flavored drinks have not only attracted consumer interest but have also started to change the landscape of the alcoholic beverage market, particularly negatively impacting traditional beer and craft breweries.
Disruption in the Alcobev Landscape
Hard seltzers, typically containing around 4–5% alcohol by volume (ABV), have surged in popularity by aligning with contemporary consumer trends such as wellness, moderation, and convenience. The appeal lies in their low-calorie profiles, refreshing taste, and perceived “healthier” image compared to beer or spirits. According to NielsenIQ, the hard seltzer category has rapidly cannibalized share at bars and restaurants, with some establishments reporting 51% of buyers switched from beer and 40% swapped from cocktails.
This trend has put traditional beer makers, especially craft breweries, in a defensive position. Historically reliant on strong consumer loyalty and high-margin seasonal offerings, many breweries are now contending with flat or declining sales as drinkers shift to hard seltzers or other low-ABV options.
Impact on Beer Consumption
The beer industry, already facing headwinds due to evolving health consciousness and changing taste preferences, is now squeezed further. Craft beer, which once enjoyed near-cult status among urban millennials, is particularly vulnerable. The consumers who once sought hoppy IPAs or robust stouts are now looking for lighter, less calorific options that fit into active lifestyles.
This has resulted in several adverse effects for breweries:
- Reduced Volume and Revenue: Traditional beer sales have taken a hit in key demographics, particularly among younger consumers. Many breweries have seen their flagship products decline in relevance.
- Innovation Pressure: Breweries must reallocate resources to develop seltzer variants or other non-beer offerings. While some have succeeded, many struggle with brand dilution or operational inefficiencies.
- Retail Shelf Space: Hard seltzers are crowding out beers in both on- and off-premise retail. Once dominated by craft beer varieties, supermarkets give more real estate to seltzers from new entrants and legacy players like AB InBev or Molson Coors.
The Strategic Response and Its Limits
Some breweries have jumped on the seltzer bandwagon to counteract these losses, creating their lines of spiked sparkling water. However, these efforts often come with mixed results. Unlike beer, which benefits from centuries of brand heritage and craftsmanship, seltzers are typically judged by flavor, calorie count, and packaging. In contrast, new or tech-savvy entrants often have an edge.
The shift toward health-driven drinking doesn’t end with seltzers. Non-alcoholic beers, kombuchas, and ready-to-drink cocktails also carve out space, adding more pressure on traditional beer producers.
Hard seltzers are not just a fad; they represent a broader consumer evolution that values moderation, wellness, and portability. While this opens new opportunities for beverage companies, the impact on beer, especially craft breweries, is real and sustained. In the coming years, survival will depend on how nimbly breweries can diversify, reposition, or reinvent themselves in a market that no longer guarantees loyalty to the pint.
For food and beverage valuation services that truly take industry trends into consideration, Appraisal Economics is here to help!
The Big Beautiful Bill and Its Potential Impacts on Renewable Energy
The “One Big Beautiful Bill Act” (OBBBA), recently passed in the U.S. House of Representatives, has stirred significant concern across the renewable energy sector. While its name suggests optimism, climate and energy experts call it a direct threat to the clean energy transition, reversing years of federal progress on decarbonization, grid modernization, and domestic energy innovation.
Rather than advancing renewable energy, the OBBB essentially dismantles the federal tax credit structure that has fueled clean energy growth under the Inflation Reduction Act (IRA). It proposes the early repeal of several key credits, including:
- Sections 45Y and 48E, which offered performance-based and investment-based credits for clean electricity,
- Section 45X, a manufacturing credit designed to incentivize domestic production of solar panels, wind components, batteries, and inverters,
- Tax credits for residential clean energy, electric vehicles, energy storage, and efficient home improvements.
The bill sets a tight 60-day window after enactment for projects to “begin construction” to remain eligible. Additionally, from 2026 onward, any project with supply chain ties to “foreign entities of concern”—a designation targeting Chinese involvement—would be disqualified from credits altogether.
Economic and Market Implications
According to Energy Innovation’s analysis, the bill could slash clean electricity capacity additions by 72%, cutting annual deployment from roughly 100 GW to just 33 GW. This dramatic pullback would raise electricity costs, stifle domestic manufacturing, and significantly delay the country’s emissions reduction goals.
As the Center for American Progress highlighted, the rollback could also jeopardize more than 270,000 jobs created or supported by clean energy investments under the IRA, particularly in red and rural states that have attracted a surge of renewable manufacturing projects since 2022.
In Florida, for example, where utilities are working to expand solar and EV infrastructure, local experts warn that the bill will increase long-term costs for consumers, shrink investment, and deepen the state’s vulnerability to climate-related risks.
Industry and Expert Reactions
Clean energy advocates have described the legislation as a “clean energy nightmare scenario.” The Solar Energy Industries Association, American Clean Power Association, and National Association of Manufacturers have all opposed the bill, citing its economic and geopolitical consequences. The rollback of tax credits—especially for domestic manufacturing—could reduce U.S. competitiveness against China in clean energy supply chains, despite the bill’s intention to address those dependencies.
Moreover, experts stress that the bill doesn’t propose a serious alternative platform for a transition table, secure, or sustainable energy supply, creating uncertainty for developers, utilities, and investors alike.
Despite its populist branding, the One Big Beautiful Bill Act is not a pro-energy or pro-consumer policy. However, a sweeping reversal of clean energy incentives threatens to derail the country’s climate progress and undercut domestic economic gains. As it moves to the Senate, the future of U.S. renewable energy policy may hinge on whether legislators choose to preserve or dismantle the framework that’s driving the energy transition.
If you are looking for renewable energy valuation services that appropriately account for this turbulent environment, Appraisal Economics is here to help!
The Spike in Housing Development Near Malls
In recent years, one of the most surprising catalysts for housing development has come not from urban planners, developers, or local governments but from shopping malls. Many malls are no longer the epicenters of suburban retail culture they once were. As e-commerce and shifting consumer behavior have disrupted their commercial viability, storefronts have sat vacant. However, instead of slipping into obsolescence, malls are becoming key players in a new wave of mixed-use development, especially housing.
The Appeal of Mall-Centric Housing
A few key factors drive the shift toward residential development near or on mall properties. Malls are typically located in prime suburban areas with established infrastructure, including roads, public transit access, and proximity to schools and employment centers. This makes them highly attractive for developers looking to create dense, livable communities without starting from scratch.
Many mall properties, such as surface parking lots or vacant anchor stores, include large tracts of underutilized land ripe for redevelopment. By repurposing these spaces, developers can introduce residential units while maintaining or reimagining retail and commercial offerings, creating vibrant, self-contained neighborhoods.
Benefits for Communities and Developers
The integration of housing with retail offers various benefits. For developers, it provides a sustainable path forward for mall properties that are no longer profitable in their original form. It addresses the pressing need for more housing for municipalities, particularly in suburban areas where housing shortages are growing.
Residents, in turn, are rewarded with a lifestyle that prioritizes accessibility and walkability. Add them here: Imagine living steps away from grocery stores, restaurants, fitness centers, and entertainment venues, all without having to get behind the wheel. This model also promotes deeper community engagement by providing green spaces, co-working spaces, and places for the public to gather.
Challenges and Considerations
Despite the promise, transforming malls into mixed-use communities is challenging. Often, zoning changes are necessary, which can be met with resistance from area residents worried about greater density, increased traffic, or the loss of neighborhood character. Also, the success of these types of developments will depend on strategic design and a balanced tenant mix to ensure resident and commercial viability.
Financing can also be complex, particularly when retrofitting existing mall structures. Developers must navigate the intricacies of phasing construction, maintaining active retail operations during redevelopment, and aligning with long-term city planning goals.
A Glimpse into the Future
Cities like Atlanta, Toronto, and LA have seen successful examples of mall-to-residential conversions, and the trend shows no slowing. As urban centers expand outward and consumer habits evolve, the fusion of housing and retail in once-traditional shopping malls represents a forward-looking solution to some of the most pressing challenges in urban planning.
This movement reflects a broader rethinking of living, shopping, and interacting. Once a symbol of consumerism, the mall is being reimagined as a hub for community and connection, a powerful example of adaptive reuse that aligns with modern lifestyles and sustainability goals.
Appraisal Economics’ suite of real estate valuation services takes into consideration all of the complex nuances within the housing development landscape. Contact our team today!
Update on the State of Water Utilities
The U.S. water utility landscape 2024 was shaped by declining M&A activity, intensifying regulatory pressures, and shifting investment dynamics. As we enter 2025, utilities, investors, and public agencies must brace for continued disruption and renewed scrutiny.
M&A Activity: A Cautious Market
2024 marked the third consecutive year of decline in U.S. private water M&A activity. With just under 150,000 customer connections transferred, the market slowed to its lowest volume since 2018. This cooling is primarily attributed to high interest rates and increasingly complex regulatory hurdles.
Investor-owned utilities (IOUs) turned to small and tiny systems to avoid public and political pushback—nearly 80% of 2024 transactions involved systems serving fewer than 3,300 people. More significant transactions became riskier, with public opposition and litigation complicating approvals. For instance, high-profile resistance in Connecticut led to extended delays and negative headlines for major players.
Still, while volume dipped, strategic interest in wastewater systems remained strong. In Q4 2024, wastewater assets accounted for half of all M&A deals, an all-time high by quarterly share. This signals a growing recognition of long-term value in decentralized and aging wastewater infrastructure.
Regulatory Pressures: PFAS and Public Accountability
The regulatory climate in 2024 was dominated by the EPA’s finalization of its national drinking water standards for PFAS or “forever chemicals” linked to severe health conditions. The new rule sets legally enforceable limits on six PFAS compounds, with compliance deadlines beginning in 2027.
Water utilities, particularly smaller systems, are grappling with the financial implications. Testing, treatment installation, and long-term monitoring will require significant capital investment. Some systems may need to consolidate or seek acquisition to meet regulatory demands, presenting both a challenge and an opportunity for consolidation.
In parallel, consumer advocacy has gained ground. Public distrust fueled by ongoing lead pipe replacement issues and high-profile contamination cases has amplified calls for transparency and stricter utility oversight. Regulatory bodies respond with increased inspections, reporting mandates, and stringent enforcement.
What to Expect in 2025
Looking ahead, the water utility M&A market is expected to remain muted. Elevated interest rates and regulatory fatigue will continue suppressing the appetite for large transactions. That said, niche opportunities in underserved areas and wastewater infrastructure may still attract targeted investment.
Utilities are also bracing for the financial weight of PFAS compliance. Many will reassess their asset portfolios, operating models, and partnership strategies to stay afloat. States may step in with additional funding support, but federal dollars, mainly through the Bipartisan Infrastructure Law, will remain a critical lifeline.
From an appraisal perspective, we anticipate significant variability in utility valuations in 2025. Regulatory compliance costs, rate-setting challenges, and operational risk profiles will be key valuation drivers, particularly for systems facing PFAS-related upgrades.
The U.S. water utility sector is navigating a period of recalibration. While headwinds persist, strategic buyers and well-prepared operators will find value, especially where regulatory pressure aligns with infrastructure needs. At Appraisal Economics, our appraisal services help clients quantify risk, measure opportunity, and make sound decisions in a rapidly changing environment.
Negative expected impacts to US economy from a trade war with Canada
Trade between the United States and Canada is profoundly significant because both countries trade with each other the most. Any form of trade conflict would be equally damaging to both countries. A trade dispute in the form of a trade war between these two nations would lead to devastating economic consequences for the United States and ruin some other critical sectors, leading to severe unemployment and distressed economic growth.
When it comes to Canada, the United States will economically endure a decline if a trade war develops, particularly concerning production, energy, and agriculture. A substantial amount of agricultural products, such as grains, meat, and dairy, are imported by Canada from the US. If they choose to fight back, it will be less favorable for American farmers due to less favorable American imports. Similarly, the automobile and steel industries, which rely heavily on exports from the neighboring states, will experience shipping delays, increased production prices, and a loss of global market competitiveness.
Added trade restrictions and rising tariffs difficulty would put considerable economic pressure on businesses that depend on exports from Canada. There may be increased unemployment as companies will need staff layoffs. These small businesses would especially suffer as the economy dollars spent by Canadian consumers and vendors. An unfavorable change in economic conditions may lessen the consumer’s confidence, resulting in decreased expenditures and investments in the nation.
Wars fought by countries over trade result in inflation, making goods and services more expensive. If Canada tariffs on American products, US businesses stubbornly try to reclaim the losses by charging American consumers. Not only goods but also the materials needed to manufacture them will become costlier. The economy will undoubtedly face fueling inflation. Industries heavily affected would include the agriculture, automobile, and homeware sectors, worsening citizens’ financial situation.
This economic conflict is bound to tarnish America’s reputation as a go-to trade partner. Canada trades extensively with several countries, and it is logical to assume they will look for other agile, flexible partners. Economically, they’ll be able to strengthen ties with the European Union and China, not to mention Canada itself. As a result, American clout and trade will decline in North America. This ultimately can result in a diminished US export market for longer.
Although fighting trade disputes can sometimes be necessary to protect national interests, a prolonged trade war with Canada would be economically costly for the United States. The negative consequences could well outnumber potential benefits, from job losses and rising consumer costs to weakened trade relationships. While economic integration is the foundation of prosperity and stability in North America, maintaining strong trade relations with Canada is equally paramount to long-term partnership.
As the global economy navigates these potential challenges in the coming months, accurately capturing valuation changes as companies increase prices and reduce headcount will be of paramount importance. Learn more about how Appraisal Economics can help!
Review Of M&A Activity For Nonprofits In 2024
Nonprofit mergers in 2024 reflected an industry recalibrating in response to economic pressures, funding constraints, and shifting donor expectations. Organizations once hesitant to consolidate now view mergers and acquisitions (M&A) as a proactive strategy rather than a last resort. Last year underscored a growing emphasis on mission alignment over mere financial survival, with leadership teams prioritizing strategic combinations that amplify impact rather than simply preserve operations.
The most successful mergers have integrated complementary programs, reducing redundancies while enhancing service delivery. Unlike previous years, where financial distress often dictated consolidation, today’s nonprofits are approaching M&A to optimize efficiency and achieve broader systemic influence.
Financial Pressures and Regulatory Shifts
Economic headwinds have significantly shaped nonprofit M&A activity this year. Inflationary pressures and fluctuating donor contributions have pushed organizations to consider partnerships that stabilize revenue streams and expand donor networks. Grant-making entities and major philanthropic institutions have signaled a preference for supporting fewer, stronger organizations rather than dispersing funds across an increasingly fragmented sector. As a result, nonprofits looking to secure long-term funding have leaned into M&A as a strategy to present a more compelling, scalable model to institutional funders.
Regulatory changes have also influenced deal structures. Increased scrutiny of governance frameworks and financial transparency has required organizations to approach consolidation with greater diligence. Boards conducting due diligence are now prioritizing not only financial compatibility but also governance cohesion, ensuring that merged entities meet heightened compliance standards while maintaining their public trust. Transactions in 2024 have widely centered on streamlined governance structures that facilitate efficient decision-making without diluting mission integrity.
The Role of Technology in M&A Execution
Digital transformation has reshaped how nonprofits navigate mergers, from initial due diligence to post-merger integration. Organizations with sophisticated data management systems have experienced smoother transitions, leveraging analytics to assess program impact, financial health, and operational efficiency before finalizing agreements. Cloud-based collaboration platforms and AI-driven financial modeling tools have reduced integration timelines, allowing leadership teams to make data-driven decisions faster and more accurately.
Beyond logistics, technology has also influenced how nonprofits communicate mergers to stakeholders. In an era where transparency and engagement drive donor confidence, organizations have embraced digital storytelling to convey consolidation’s rationale and anticipated impact. Social media campaigns, donor webinars, and interactive reports have become essential in shaping the public narrative around mergers, ensuring that key stakeholders view them as strategic enhancements rather than distress signals.
Looking to the Future
The trajectory of nonprofit M&A suggests that consolidation will remain a dominant strategy for organizations seeking long-term resilience. While financial stability continues to be a driving force, the sector’s shift toward intentional, impact-driven mergers signals a more strategic approach to organizational growth. Nonprofits that recognize M&A as a tool for amplifying influence rather than a reaction to adversity will set a precedent for sustainable collaboration. As economic pressures persist and regulatory expectations evolve, leadership teams that approach consolidation with foresight, agility, and a commitment to mission integrity will emerge stronger and better positioned to navigate the sector’s complexities.
Within this process, M&A-related valuations can be crucial in aligning critical insight and transactional stability. Appraisal Economics brings over 30 years of experience in such services, making us a premier option for those pursuing a merger or acquisition.