Mid-Year M&A Update: Dealmaking in the Age of AI and Strategic Realignment
- Kennedy Editorial
- Sep 16
- 3 min read
Updated: Sep 17
By Ramone Param, Managing Partner, Kennedy Consult and M&A I Advisor to Consulting Leaders, Buyers/Investors I M&A, Strategic Advisory and Benchmarking
Strategic shifts, AI disruption and private equity appetite continue to rewrite the playbook in North America and Europe, against a backdrop of more cautious M&A market.
In the first half of the year, we’ve been advising clients on a consulting landscape in motion: traditional advisory models are under pressure as generative AI tools automate core functions, reshape client expectations and compress delivery timelines.
Meanwhile, dealmakers are navigating a tighter macroeconomic environment with elevated interest rates and geopolitical uncertainty, prompting more disciplined dealmaking and more targeted strategic transactions. Private equity continues to drive mid-market momentum with dry powder, pursuing platform investments in scalable, tech-enabled consulting firms, while corporates lean into synergistic digital repositioning.
Whether you're on the buy-side, sell-side, or simply rethinking your market position, the forces shaping consulting M&A in 2025 demand agility, foresight, and a keen eye for value creation in a fast-evolving professional services arena!
Professional services firms across regions are refocusing on scalable, AI‑driven models and reducing slower-growth, labor-intensive segments. In North America, transformational larger deals have dominated, led by tech‑enabled consulting platforms. Whilst in Europe, we’ve seen more cross-border interest, particularly from U.S. buyers seeking digital capabilities in the UK, Western Europe and Nordics.
While overall M&A activity is down in volume, overall deal values remained stronger indicating more focused strategic plays, which we anticipate will continue in H2.
AI: The Elephant in Every Deal Room
AI isn’t just disrupting how consulting is delivered—it’s influencing who buys what. We observe Big Four and strategy firms trimming non-core units to sharpen focus or unlock value in tech-driven intersections. Tech firms are also creeping upstream, acquiring advisory talent.
We anticipate a potential large transformational play as this trend continues.
PE Dry Powder: Still Calling Shots
Private equity continues to sit on considerable dry powder and drive deal flow:
Notable activity in accounting, legal advisory, compliance & ESG, digital ops, and infrastructure consulting.
Focus remains on defensible margins, fee-for-outcome models and consulting-tech hybrids.
We expect PE to continue to drive mid-market activity, especially in fragmented verticals ripe for consolidation.
The consulting sector is no longer just about headcount and billable hours—it’s about IP, outcome-driven models, and resilience in a tech-driven economy. As our Mid-Year M&A Update: Dealmaking in the Age of AI and Strategic Realignment shows, those who adapt fastest will seize the best opportunities. Whether you’re buying, selling, or repositioning, the next 6–12 months will reward strategic clarity and disciplined execution.
Want a deeper dive or to benchmark your M&A strategy? Let’s talk
This article is written for educational and informational purposes only and does not constitute investment, tax, or legal advice. The intelligence has been gathered from a variety of public and non-publicly available sources, including analysis from AI tools - which have not all been verified, reviewed or approved. The views and opinions expressed are those of the author and do not represent the views of any affiliate organization. Any opinions or views expressed are as of the date written and are subject to change without notice, and may be updated or modified at any time.
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