Our 2027 M&A outlook starts with a look back. As 2026 wraps up, it’s worth reviewing where valuations and buyer behavior landed across the four verticals Merge now works in. Here’s what it means if you’re thinking about a sale next year.
Marketing agencies: a steady 2027 M&A outlook
Agency valuations held reasonably steady this year. However, the range within that stability widened. Agencies with real AI-driven efficiency gains and a strong retainer mix priced at the top of their range. Those leaning on flashy client rosters without retention data saw more pushback than they would have two years ago.
The lesson for 2027 is simple. The fundamentals still work, but buyers are checking your homework more closely.
Media & tech: a newer market finding its shape
This was the year buyer behavior in media and tech became noticeably more sophisticated. Strategic acquirers sharpened their focus on defensibility over generic AI positioning. PE buyers doubled down on recurring, subscription-style revenue. Meanwhile, individual buyers kept an active market alive for smaller content and software properties.
Are you in this space and eyeing 2027? Spend the next few months building the retention and defensibility story buyers now expect. Our breakdown of media and tech M&A trends covers what they’re asking for.
Home & commercial services: still undervalued by owners
PE interest in home and commercial services accelerated this year. The drivers were the same fragmentation and recurring revenue dynamics we covered in why PE firms are circling home service businesses. What stood out was how many owners still don’t know what their business is worth.
If that’s you, 2027 is a good year to find out, even if you’re not ready to sell. Knowing your number changes how you run the business in the meantime.
Business & professional services: retention risk took center stage
Buyers in this vertical got sharper about partner dependency and client concentration. Some firms had already spread client relationships across a broader team. Many also had solid non-compete agreements in place. Those firms moved through deals more smoothly and priced better.
Heading into 2027, this is the highest-leverage area for professional services owners to address. See our guide to professional services firm valuation for where to start.
The 2027 M&A outlook across every vertical
Across every vertical, the pattern is the same. Buyers aren’t just underwriting last year’s revenue anymore. Instead, they’re underwriting how durable and defensible that revenue will be.
Broader market data points the same way. According to GF Data’s Q2 2026 report, average middle-market purchase multiples dipped to 7.0x adjusted EBITDA, down from 7.3x in Q1. Deal flow held steady, but buyers stayed selective. The businesses that priced best could tell a clear, documented story about why their numbers would hold up.
Our content this year laid out the playbook for each vertical. Agencies need AI-driven efficiency. Media and tech companies need defensibility and churn data. Home services businesses need equipment and contract documentation. Professional services firms need diversified client relationships. Whichever vertical you’re in, that’s the work worth doing over the next few months.
Final thoughts on selling a business in 2027
2026 was the year Merge expanded well beyond agencies. It was also the year buyers in every vertical got more precise about what they’re paying for. Our 2027 M&A outlook comes down to one piece of advice: if a sale is on your radar, start preparing now.
Owners who spend the next few months getting ready will be in a much stronger position. Waiting until you’re ready to go to market puts you behind. Reach out to Merge and start the conversation today.
