Louis Lehot and Brian Wheeler Discuss Dealmaking in 2025

Foley & Lardner LLP partners Louis Lehot and Brian Wheeler discussed dealmaking prospects in the year ahead in the PitchBook article, “Dealmakers see no ‘quick return to a rosy IPO market’ in 2025.”

“As I look into 2025, I don’t think it’s as rosy as people thought the morning after the election,” explained Lehot. With the suggestion of antitrust enforcement in tech remaining a focus even under a new presidential administration, Louis said the M&A market likely won’t see an “opening of floodgates of activity.” He added that distributions from funds will remain low, making LPs reluctant to meet capital calls.

Wheeler noted concern around the incoming administration’s protectionist policies. “That’s one other big unknown that people are going to be looking for in the next three to six months to see how that (policy shift) plays out,” he explained.

With several variables in play that could swing the market, GPs are waiting to see how the environment evolves before committing to deals.

“I’m hearing more and more term sheets, but not many of them moving forward,” Wheeler added.

As the market prepares for the year ahead, Lehot emphasized that there is light at the end of the tunnel. “We are going to have a little bit of a slow start, and things will pick up nicely as we no longer have the uncertainty.”