As 2025 draws to a close, many companies are ending the year with a now-familiar mix of opportunity and constraint. Interest rates have stayed above pre-pandemic levels, liquidity has been available to some and uneven for others, and investor expectations have kept pace with the rapidly changing operating realities. Decision timelines have shrunk. Stakeholders have grown more data-driven and risk-focused. In this environment, clarity has been both more difficult to attain and more valuable when realized.
Throughout the year, these dynamics were echoed repeatedly in Wall Street Journal reporting, which noted persistent rate pressure, uneven access to credit, and heightened lender scrutiny across the middle market. Companies across industries experienced shorter decision windows and closer covenant monitoring as stakeholders became increasingly data-driven.
MCA Financial Group has seen a similar trend across industries and circumstances. For companies prospering or under financial pressure, leadership teams operate in environments marked by complexity, compressed timelines, and heightened scrutiny from lenders, investors, and other stakeholders. The historical distinction between “healthy company M&A” and “distressed advisory” continues to blur. Each requires technical rigor, a structured process, and thoughtful communication.
Two Different Assignments, One Shared Reality
Two recent engagements epitomize how these dynamics played out in 2025.
In one assignment, MCA acted as Assignee for the Benefit of Creditors for a midsize furniture distributor whose performance had been steadily deteriorating, with increasing liquidity pressure. The engagement called for a process that was transparent, timely, and supportable. MCA’s role was decidedly more than statutory procedure. The firm undertook intensive financial reviews, communications with creditors, analysis of transaction structures, and management of administration and wind-down activities to maintain value and protect stakeholder interests within a tight timeframe.
In one engagement, MCA advised a regional construction and infrastructure services company that received an unsolicited offer from a private equity buyer. The company itself was not in a state of distress; however, the situation was complex. The operating footprint was multifaceted, requiring careful evaluation of the buyer’s strategic agenda. The timeline to respond was limited. MCA worked with ownership to validate valuation, support quality of earnings and other analyses, coordinate diligence across legal and financial workstreams, and help the owners navigate a significant transition for the business.
These situations seem quite different at first glance. One involved fiduciary responsibility in a distressed environment. The other involved a strategic sale for a viable business. In practice, both were shaped by the same underlying conditions that defined 2025: the need for speedy decisions, stakeholders who demanded transparency, and a high cost for missteps. MCA’s ability to organize information, coordinate participants, and maintain disciplined processes helped each client progress with greater confidence.
The characteristics at the market level that shaped 2025 were:
Several broad themes emerged from MCA’s work across the year.
- Liquidity remained available but not on uniform terms, which placed a premium on forecasting and lender communication. (Wall Street Journal reporting, 2025)
- Lenders and investors put greater focus on covenant performance, cash generation, and downside risk. (WSJ Credit Markets Coverage, Q3–Q4 2025)
- Buyers continued to approach strong companies earlier in their growth curve, often testing readiness for a potential sale. (WSJ Private Equity Outlook, 2025)
- Companies that were stressed or underperforming found that their options could narrow more quickly than in prior cycles.
- Stakeholders in the lower middle market articulated greater expectations for structured processes, clear documentation, and reliable information. (WSJ Middle Market Deal Activity, 2025)
These conditions did not sort neatly into “good” or “bad” categories. They created, instead, a context where the companies that invested in planning, visibility, and decision discipline-whether in pursuit of growth or battling adversity-could adapt more readily.
The Technical and Human Dimensions of Advisory Work
One of the consistencies of 2025 has been a need to integrate technical work along with human judgment. MCA’s teams spend significant time on detailed modeling, liquidity analysis, valuation work, and transaction structuring. At the same time, much of the firm’s impact came from understanding how different stakeholders viewed risk, timing, and outcomes.
Clearly, advising an owner who is considering an unsolicited offer for the family business is a very different conversation from guiding creditors through a structured wind-down. Both, however, require clear communication, realistic expectations, and alignment around priorities. MCA’s role frequently entailed translating complex financial and legal concepts into understandable alternatives, assisting parties in determining what truly mattered at each juncture while keeping processes on course as conditions fluctuated.
Looking Ahead to 2026
Planning for 2026, several themes are likely to remain relevant from 2025.
Interest rates are likely to converge toward a more neutral level, though the Wall Street Journal has reported that policymakers see little prospect of returning to the ultra-low cost of capital of prior years. Particular supply chain and geopolitical risks will remain in specific industries. There may be increased pressure from consolidation in industries where scale and cost efficiency are crucial. Some companies will have new opportunities to invest, acquire, or reposition themselves as competitors adjust at differential speeds.
In this environment, the line between non-distressed M&A and restructuring work will continue to blur. Healthy companies will still undertake strategic transactions with the same level of urgency, while stressed companies will be under increased pressure to define and execute options more quickly. Stakeholders will continue to favor advisors able to navigate each type of situation with equal competence.
For MCA, that means continuing to apply a single, integrated approach across the full range of assignments. The firm remains focused on analysis grounded in data, clear and consistent processes, and communication aligned with the interests of owners, creditors, and other stakeholders.
Closing Perspective
The one lesson that 2025 did reinforce is that uncertainty is not a transient condition but rather a structural feature of the market. Clarity, in this context, is not merely desirable but is an asset.
Throughout the year, MCA Financial Group worked with clients facing very different starting points but similar needs: to understand their options, assess trade-offs, and make defensible decisions. Combining technical expertise with practical judgment, MCA helped clients manage complexity in ways that protected and, where possible, created value.
As 2026 approaches, the firm remains committed to that role. Whether advising on a strategic sale, guiding a restructuring, or helping stakeholders through a transition that touches both, MCA’s objective is consistent: to bring structure, insight, and momentum to situations where the stakes are high and the path forward is not always obvious.
Reach out to a MCA professional today to discuss how MCA can help you navigate complex transitions with confidence.