Keynote Address
The day began with a keynote speaker, Randy Cohen of Harvard Business School, discussing challenges investors may face over the next decade and encouraging the audience to consider their perspectives on these interconnected challenges and potential investment opportunities.
NP Capital Connector Growth Company Showcase
Following the keynote, Andrew Goodman and Brooke Furst, leaders of the Nixon Peabody Capital Connector—a complimentary initiative that brings growth-stage companies together with investors—hosted an Investment Showcase. Seven companies seeking capital funding were provided the opportunity to showcase their companies to potential investors:
- Caelux—A developer and manufacturer of perovskite-based solar power products designed for the terrestrial solar industry
- Coravin—A global wine technology company that enables wine lovers to access wine in any bottle without removing the cork
- GoodWell Foods—A New Hampshire-based manufacturer of private-label frozen pizza and shelf-stable pizza crusts for major American retailers
- Mercedes Cab Company—A diversified passenger ground transportation company, including school bus, non-emergency medical, and corporate and wedding event transportation
- Neurable—A developer of brain-computer interfaces designed to translate brain activity into simple and actionable insights
- Trident Agriculture Solutions—A pioneer in the new era of sustainable agriculture, offering innovative PFAS remediation
- Vuelo—A breakout super-premium tequila brand celebrated for being 100% additive-free and a double gold medal winner at the prestigious San Francisco and New York World Spirit Conferences
Individuals from all sectors of the investment world (including private equity, venture capital, debt funding, and investment banking) then had the opportunity to network and learn more about the companies in a more intimate setting.
M&A Roundtable Discussion
To conclude the day, attendees heard from industry leaders who outlined the state of middle-market M&A, the new administration’s market impact, and industry trends to watch in 2025. The panel featured Claudine Cohen of CohnReznick LLP, Thomas Frossell, formerly with the London Stock Exchange, Jeremy Hitchcock of New North Ventures, Vipin Kalra of Protos Security, Chris Nicholas of Shields & Company, and Sophia Popova of Summit Partners, and was moderated by Nixon Peabody corporate partners Greg O’Shaughnessy and Amy O’Keefe.
Here are the takeaways:
Private Equity and M&A Trends for 2025
The panelists expressed a tentatively optimistic outlook for M&A and private equity investing in the year ahead, so long as macroeconomic challenges, such as inflation and interest rate fluctuations do not impede growth. Both private equity and corporate investors are maintaining substantial capital reserves, poised to deploy funds strategically when favorable conditions arise.
Several economic and demographic factors underpin a robust deal-making environment. However, persistent uncertainties, including tariff pressures, geopolitical tensions, and legislative unpredictability, have tempered overly bullish projections. Despite these challenges, M&A activity is anticipated to gain momentum as businesses adapt to evolving market dynamics.
How will the new administration shape the M&A landscape?
The panel discussed various policies introduced by the new administration that will likely shape the M&A landscape over the coming year. While some industries stand to benefit from deregulation—facilitating significant M&A traffic—others may face hurdles due to shifts in labor policies, taxation, and international trade agreements.
Key concerns revolve around changes to immigration policies (which will affect workforce availability) and tariffs (which will impact supply chains and could increase operational costs). The panel highlighted the effect of the pandemic, underscoring the vulnerabilities of global supply chains, which prompted companies to reconsider supplier diversification, automation, and AI-driven efficiencies. Industry leaders are actively discussing these trends and exploring how businesses can navigate a post-pandemic economy.
One of the key lessons from recent global disruptions is the necessity of diversifying supply chains to mitigate risks. Companies are increasingly focused on broadening their supplier base and geographical sourcing strategies to prevent overreliance on a single country or region. The potential for tariffs add another layer of complexity, requiring businesses to assess their supply chains meticulously. Many companies are unaware of the hidden tariff risks in their procurement strategies, mistakenly assuming that domestic sourcing shields them from international tariff implications. However, the panel stressed the importance of understanding the full supply chain—including raw material origins—which is essential for accurate cost analysis and risk management. With tariffs often being used as political tools, unpredictability in trade policies can significantly affect business operations.
While tariffs can introduce cost pressures and disrupt supply chains, they also create opportunities for companies to explore new markets and develop innovative operational models. The focus on domestic manufacturing and supply chain resilience has led to increased investment in onshoring and nearshoring strategies. Industries such as infrastructure, manufacturing, and technology stand to benefit from these shifts, provided that companies can navigate regulatory uncertainties.
The administration’s stance on immigration and labor policies will also significantly influence workforce availability and economic growth. Businesses are closely monitoring potential reforms, particularly regarding the H1B visa program, which plays a crucial role in attracting skilled talent. The ongoing labor shortage, exacerbated by demographic shifts and pandemic-related disruptions, underscores the need for comprehensive workforce planning.
The Role of AI in Business Operations
Artificial intelligence (AI) continues to reshape business operations and influence investment strategies, productivity, and efficiency. AI’s transformative impact is particularly evident in predictive maintenance, cybersecurity, and automation. As software investors explore AI-driven innovations, they recognize both the disruptive potential and the investment opportunities in AI infrastructure, including power capacity and data management solutions.
The panel discussed the strategic approach required to invest in AI and the focus on technologies that drive efficiency and mitigate risks. Companies are prioritizing AI applications, such as automation in industrial operations and advanced data analytics for predictive insights. However, integrating AI into existing workflows presents challenges, often necessitating a cultural and structural shift within organizations. Decision-making processes are increasingly data-driven, requiring businesses to adapt to new paradigms of automation and machine learning.
While AI adoption has accelerated, regulatory discussions around AI usage have intensified. Striking a balance between fostering innovation and implementing safeguards to prevent misuse remains a key challenge. While minimal regulation encourages technological advancements, oversight is necessary to ensure ethical AI deployment. The panel accentuated the need for policymakers and industry leaders to collaborate to develop frameworks that enable AI-driven growth while addressing societal concerns.
Investment Industry Predictions for 2025
The panel highlighted several key industries poised for significant growth in 2025, driven by technological advancements, sustainability initiatives, and evolving market dynamics.
AI-driven innovations and digital transformation will continue to be major investment drivers. The integration of AI in various business operations will enhance productivity and create new business models, making technology and AdTech sectors highly attractive for investors.
Sustainability initiatives and government incentives will continue to fuel growth in renewable and clean energy. The focus on reducing carbon footprints and promoting green energy solutions will most likely lead to increased investments in this sector.
Healthcare remains a resilient sector for M&A activity despite regulatory challenges. The potential impact of Medicare rate adjustments and policy changes on the industry is a key consideration for investors. Further, the ongoing demand for medical services and advancements in biotechnology will create numerous M&A opportunities. The healthcare sector will continue to expand, driven by the need for innovative treatments and healthcare solutions.
The demand for technical security services also remains high, driven by cybersecurity threats and geopolitical risks. Additionally, evolving consumer behavior is influencing retail and downstream supply chain operations. Entrepreneurs must remain adaptable, leveraging market insights to optimize business strategies.
Building resilience in business operations is more critical than ever. Companies are focusing on cost management, operational flexibility, and risk mitigation strategies to navigate market uncertainties. By leveraging technology and data analytics, businesses can optimize operations and maintain profitability despite external challenges. A lean cost structure, coupled with strategic investments in automation and AI, can position organizations for long-term success.
The evolving M&A landscape presents both challenges and opportunities for businesses in 2025. Key considerations include supply chain diversification, tariff implications, AI integration, and labor market dynamics. By focusing on resilience, innovation, and strategic planning, companies can navigate uncertainties and position themselves for long-term success.