For years, sponsor add‑on acquisitions have been the workhorse of Florida’s deal market. That trend continued in 1H‑2025, with add‑ons comprising about 55% of total sponsor deals. But beneath the surface, a subtle shift is emerging.
Add‑Ons vs. Control Deals
When isolating control investments, add‑ons accounted for approximately 72%, a slight decrease from previous years.
This is surprising given the uncertain economy—typically a backdrop where buy‑and‑build strategies increase due to lower risk and lower valuations.
Why the Add‑On Percentage May Be Softening
Possible explanations include:
- Sponsors slowing platform expansion to focus on integration
- Fewer high‑quality add‑on targets coming to market
- A cooling in portfolio company leverage capacity due to rate volatility
Deal Type Breakdown Remains Consistent
- Growth/Expansion: ~23%
- Buyout/LBO: ~21%
These categories have remained steady, demonstrating ongoing appetite for minority stakes and strategic control deals even amid economic questions.
The Road Ahead
Watch for whether this slight dip in add‑on dominance continues into the second half of 2025. It may signal a maturing cycle in which sponsors prioritize operational value creation over rapid bolt‑on consolidation.
Michael Shea represents the Tampa Florida Transworld office. In business since 2005, he has established a reputation as a trusted business broker across Florida’s key markets- from Tampa to Orlando, Melbourne, and more. Over the past two decades, Michael and his team have closed over $1 Billion in sold business volume and presided over more than 450 transactions. His credentials include the IBBA Certified Business Intermediary®, and most recently, the prestigious Certified Exit Planning Advisor® (CEPA) credential.