JPMorgan's Aiyengar Says Clients Are Going for Bigger Deals

Summary

Anu Aiyengar of JPMorgan discusses the M&A landscape at the Milken Conference. She notes that Q1 2025 saw strong deal activity driven by a scale premium, with 30 mega deals in the first four months. April experienced a pause due to geopolitical uncertainty, but larger companies are better positioned. She also highlights growth in private market valuations and secondary market liquidity.

• Q1 2025 M&A was one of the busiest first quarters on record.
• 71 mega deals (over $10 billion) were completed in 2024; 30 in first four months of 2025.
• Scale premium – larger companies trade at up to 4 turns higher multiples than smaller peers.
• April saw a slowdown in dealmaking due to geopolitical uncertainty, especially for smaller deals.
• Private market valuations remain attractive and are a significant source of liquidity.
• GP-led secondaries and continuation funds are gaining traction.
• Smaller companies face more challenges from volatility and have less flexibility.
• The declining number of public companies in the U.S. is a long-term trend.