Industry Report: Midwest Transactions 1H 2025 [Bridgepoint IB]

Key Report Highlights

• Business Products & Services Dominate Midwest Deal Flow
  In the first half of 2025, Business Products & Services accounted for over 52% of Midwest M&A volume, far outpacing other sectors like consumer products (30.7%) and IT (9%). This underscores the region’s deep industrial and services backbone, with deal activity showing resilience even as national M&A trends softened.
• Private Equity Increases Share Amid Strategic Buyer Pullback
  Strategic buyers accounted for 54% of deals in H1 2025, down from an average of 60% over the past three years, while private equity deal share is rising. This shift reflects increased sponsor appetite for add-on acquisitions targeting traditional, founder-owned Midwestern businesses amid high levels of dry powder and favorable financing conditions.
• Nebraska and Missouri Emerge as Hotspots for Mid-Market Transactions
  Deal volume in Nebraska nearly doubled year-over-year, with consumer and IT sectors more than doubling from H1 2024. Missouri also experienced a 68% quarter-over-quarter surge in Q2 2025, fueled by secondary buyouts and divestitures. Notable transactions include Summit Companies’ acquisition of General Fire & Safety and Rosebank Industries’ purchase of Electrical Components International.
• Supply Chain Uncertainty Spurs Intra-Regional M&A
  Ongoing uncertainty around tariffs and global supply chains has led Midwest dealmakers to increasingly favor domestic and intra-regional acquisitions. Buyers are prioritizing operational resilience and supplier proximity, which aligns well with the industrial-heavy and logistics-driven nature of Midwest businesses.
• Deal Momentum Persists Across Industrial and Infrastructure Verticals
  Recent deals span a wide range of sub-sectors, including transportation (Watco Companies), HVAC (Mission Plumbing), packaging (Covenant Packaging), and infrastructure services (Longview Infrastructure). These highlight continued buyer interest in specialized service providers with regional scale, especially those involved in essential services and logistics support.

Bridgepoint Investment Banking is a boutique investment bank focused on providing capital raising and M&A advisory services to middle-market companies across North America. Founded in 2012, the firm specializes in sectors including industrials, transportation, healthcare, business services, consumer, and technology.

With over 360 years of combined experience and more than 460 completed transactions totaling over $380 billion, Bridgepoint’s senior team brings deep expertise to every engagement. Headquartered in Omaha with offices in Chicago, Denver, New York, and Lincoln, the firm conducts securities transactions through M&A Securities Group, Inc., member FINRA and SIPC.

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