Bundy Group Insights

Despite broader headwinds across healthcare M&A, dermatology and aesthetics continue to attract buyer interest, particularly for high-quality practices with durable earnings, strong provider teams, and solid operational infrastructure. In this episode, Clint Bundy and Drew Thomas are joined by Dana Jacoby, founder and CEO of Vector Medical Group, and Jordan Frickles, director at Bundy Group, for a timely look at the current market.

The conversation explores the factors shaping transaction activity, including succession planning, reimbursement uncertainty, evolving state and federal scrutiny of private equity and MSO structures, and a more demanding diligence environment. Dana and Jordan also discuss what buyers are prioritizing today and why strong practices can still command compelling valuations even as the path to closing becomes more complex.

The group also draws on recent transaction experience, including Bundy Group's Catskill Dermatology deal, to explain how deal structures are adapting to perceived risk. The episode closes with practical guidance for practice owners: prepare early, strengthen the provider bench, build transferable operations, and work with advisors who understand the specialty and the changing healthcare M&A landscape.

Key Topics

• Why dermatology and aesthetics have remained active despite broader healthcare M&A headwinds
• Succession planning and the growing number of established practice owners considering their next chapter
• The impact of state-level regulation and proposed federal oversight of private equity-backed healthcare transactions
• How reimbursement uncertainty is affecting buyer and seller decision-making
• The three core drivers of value: financial performance, provider bench depth, and operational infrastructure
• Why transferability and reduced owner dependency matter to buyers
• How extended diligence and more sophisticated deal structures are changing the path to closing Lessons from the recent Catskill Dermatology transaction
• Why owners should begin preparing years before a potential sale

Key Takeaway

A strong market opportunity does not eliminate the need for preparation. Buyers are still willing to pay for high-quality dermatology and aesthetics practices, but they are examining risk more closely and taking longer to complete diligence. Owners who build a transferable practice, reduce key-person dependency, and strengthen their financial and operational systems well in advance can create greater flexibility and value when the time comes to consider a transaction.

The North American M&A market entered 2026 with strong momentum after a robust 2025, but renewed uncertainty around AI disruption, tariffs, energy prices, and interest rates tempered activity during the first half of the year. In this episode of Bundy Group Insights, Managing Director Stewart Carlin is joined by Kyle Walters, a private equity analyst at PitchBook, to examine what the latest transaction data says about the health of the market.

The conversation explores the gap between headline deal value and underlying deal count, the different behavior of strategic acquirers and private equity sponsors, and sector trends across healthcare, technology-enabled services, energy, and infrastructure. They also discuss how AI is disrupting some business models while creating new demand for power, data-center infrastructure, and related services.

They close with a look at privately held, founder-owned businesses, which continue to represent the largest source of private equity deal activity. Kyle and Stewart discuss why these companies remain attractive to buyers and how owners can strengthen value through a defensible growth story, recurring revenue, leadership depth, reduced owner dependency, and better historical backlog and pipeline records.

Key Takeaways

1. Deal count remains relatively strong even when fewer mega-deals make aggregate M&A value appear softer.
2. Strategic acquirers have been more active than private equity sponsors during periods of heightened uncertainty, though sponsor activity could rebalance as visibility improves.
3. Private equity interest is concentrating on resilient, moat-protected businesses with recurring revenue, hard-to-replace assets, embedded workflows, or other defensible characteristics.
4. Founder-owned and privately held businesses continue to account for the largest share of private equity deal sourcing and remain attractive across market cycles.
5. Owners can improve transaction readiness by reducing owner dependency, strengthening the management bench, documenting historical backlog and pipeline trends, and clearly articulating a durable growth story.

Key Insights

• Headline deal value can distort the market picture. Fewer mega-deals do not necessarily mean overall transaction activity has weakened to the same degree.
• AI is creating a bifurcated market, pressuring low-switching-cost workflows while supporting infrastructure and businesses with entrenched data, systems, or complexity.
• Healthcare M&A remains uneven: physician practice management has faced reimbursement and regulatory headwinds, while healthcare technology has shown greater resilience.
• The 'picks and shovels' around AI are drawing capital, including energy, grid infrastructure, data-center support, and related service businesses. Predictable revenue, high switching costs, team quality, low owner dependency, and a defensible moat can matter as much as rapid top-line growth.

ℹ️ Learn more about Bundy Group by visiting bundygroup.com.

In this episode of Bundy Group Insights, Managing Director Clint Bundy welcomes back Alex Chausovsky, President and CEO of 3DM Consulting and Bundy Group's economics and markets partner, for another installment of "Alex's Analysis." Alex shares his perspective on an economy that has remained remarkably resilient despite tariffs, geopolitical conflict, persistent inflation and other disruptions. He explains why that resilience doesn't tell the whole story, with some industries and higher-income consumers continuing to perform well while sectors tied to housing, automotive and other interest-rate-sensitive areas remain under pressure.

Clint and Alex also explore the growing importance of geopolitical risk and global supply-chain chokepoints. From disruptions in the Middle East to the potential consequences of instability in the Indo-Pacific, Alex discusses why business leaders need to think differently about strategic planning. Rather than relying on a single long-term plan, he encourages owners and executives to consider multiple possible scenarios and understand in advance which operational, pricing, inventory and supply-chain levers they could pull in response.

The conversation closes with a look at one of the biggest forces shaping the U.S. economy: AI and data-center infrastructure investment. Alex examines the extraordinary scale of current investment in data centers, energy, water, grid infrastructure and related technologies and explains why he believes the opportunity has staying power. For business owners serving these markets, Clint and Alex discuss balancing the opportunity to capitalize on strong demand with the need to remain prudent and diversified as the market evolves.

Key Takeaways

• The U.S. economy continues to demonstrate resilience, but performance remains highly uneven across industries and consumers.
• Geopolitical disruption and supply-chain chokepoints have become increasingly important strategic considerations for business owners.
• Businesses may benefit from scenario planning that prepares them for multiple possible outcomes rather than relying on a single long-term strategy.
• Leading indicators currently point toward relative economic stability, with the potential for continued growth into 2027.
• AI and data-center infrastructure remain significant growth areas, creating opportunities for companies providing equipment, automation, energy and other supporting services.

Episode Insights

• The economy is increasingly K-shaped. Aerospace, defense, automation and AI-related infrastructure are among the stronger areas, while housing, automotive and other rate-sensitive sectors continue to face challenges.
• Consumer spending is also divided. Higher-income households are responsible for a growing share of consumption, while many other consumers are becoming increasingly price-sensitive and selective about where they spend.
• Supply-chain risk extends far beyond shipping. Disruptions at major global chokepoints can ripple into energy, chemicals, manufacturing inputs, food production and other areas that ultimately affect company margins and pricing.
• Business strategy needs to become more adaptable. In an environment of continuing geopolitical and economic uncertainty, leaders should consider potential scenarios and determine ahead of time how they would respond.
• AI infrastructure has become a major economic force. Investment now reaches well beyond data centers themselves into power generation, water, grid improvements, battery storage, automation and other supporting systems, creating opportunities across a wide range of industries.

ℹ️ Learn more about Bundy Group by visiting bundygroup.com.

The automation, industrial technology, and control systems integration (CSI) sectors continue to experience unprecedented growth, fueled by increasing demand for robotics, AI, IoT, reshoring initiatives, and operational efficiency. In this episode of Bundy Group Insights, Managing Director Clint Bundy shares his perspective on the forces driving investment activity before moderating a panel discussion recorded live at the Control Systems Integrators Association (CSIA) Conference in Baltimore.

Joining Clint are Andy Wilson, President of the Engineered Control Solutions Division at SJE, and Jordan Frenkel, Director at Bundy Group. Together, they discuss what strategic and private equity buyers look for in acquisition targets, the factors that increase or diminish company value, and why a disciplined, competitive sale process consistently delivers stronger outcomes for business owners. The conversation also explores valuation expectations, cultural alignment, leadership continuity, and common pitfalls that can derail transactions.

The episode concludes with a real-world case study examining the successful sale of Lane Tech to SJE. The panel reflects on how thoughtful preparation, a targeted buyer process, and a strong cultural fit led to a successful transaction and post-acquisition integration. Whether you're actively considering a sale or simply planning for the future, this episode offers practical guidance on building a more valuable business long before it's time to transition ownership.

Key Takeaways

• Automation and control systems integration remain among the most attractive sectors for both strategic acquirers and private equity investors.
• Business value extends beyond financial performance—leadership depth, customer diversification, operational systems, and company culture all play critical roles.
• Running a structured, competitive sale process typically leads to higher valuations, stronger deal terms, and better long-term partners.
• Successful acquisitions depend on thoughtful post-close integration that preserves culture, talent, and customer relationships.
• Owners who begin preparing years before a transaction are consistently positioned for stronger outcomes and greater optionality.

Key Insights

• Buyer demand continues to outpace supply as capital flows into automation and industrial technology businesses.
• Consistent profitability and recurring, diversified revenue remain two of the strongest drivers of valuation.
• Culture matters. Both buyers and sellers should evaluate long-term alignment—not just purchase price.
• Preparation creates leverage. Strong financial reporting, scalable systems, and a capable leadership team reduce risk during diligence.
• The best transactions aren't necessarily the highest-priced ones. The ideal outcome balances valuation, deal structure, certainty of close, and strategic fit.

ℹ️ Learn more about Bundy Group by visiting https://bundygroup.com.

In this episode of Bundy Group Insights, Clint Bundy and Stewart Carlin address one of the most common—and often misunderstood—questions in M&A: the difference between a business broker and an industry-focused investment bank. Drawing on experience and real-world examples, they unpack how each model operates and why the distinction matters to privately-owned companies and business owners.

The conversation explores three critical dimensions: industry specialization, the rigor of securities and broker-dealer licensing, and the fiduciary responsibility that shapes how advice is delivered. While business brokers typically focus on smaller, transaction-oriented engagements, industry-focused investment banks take a more structured and strategic approach—emphasizing preparation, positioning, and curated buyer engagement to drive outcomes.

Ultimately, the episode reinforces that the choice is not about which advisor is "better," but about aligning the advisor's capabilities with the complexity, goals, and dynamics of the transaction.

Key Takeaways:

• The decision between a business broker and an industry-focused investment bank is not about which is "better," but about aligning the advisor with the complexity, goals, and dynamics of the specific transaction.
• Business brokers are typically best suited for smaller, more straightforward businesses where speed, efficiency, and access to a local or known buyer pool are the primary objectives.
• Industry-focused investment banks bring deeper specialization, allowing for more thoughtful positioning, targeted buyer outreach, and a process designed to maximize value and strategic fit.
• A well-run investment banking process is intentional and engineered—combining preparation, market insight, and competitive dynamics to drive stronger outcomes for owners.
• Licensing and regulatory structure, including securities and broker-dealer requirements, influence the scope of advice an advisor can provide and whether all strategic options are fully explored.
• Complex businesses often require extended preparation and strategic guidance before going to market, reinforcing the value of advisors who can engage beyond just the transaction itself.
• A fiduciary, outcome-oriented approach prioritizes long-term value and alignment with owner objectives rather than simply executing a transaction quickly.

ℹ️ Learn more about Bundy Group by visiting bundygroup.com.

In this episode of Bundy Group Insights, Managing Director Clint Bundy welcomes back Alex Chausovsky, President and CEO of 3DM Consulting and Bundy Group's economics and markets partner, for a wide-ranging discussion on the economic and geopolitical forces shaping 2026. As the conversation moves beyond a 2025 defined by uncertainty, Alex outlines why the operating environment ahead is better described as one of structural complexity—requiring more adaptive, scenario-driven decision-making from business leaders.

A central focus of the episode is tariffs and inflation, including what actually occurred in 2025 versus what many feared. Alex breaks down how tariff costs were absorbed across the system, with U.S. companies, consumers, and foreign exporters each bearing a share of the burden. While inflation remained relatively contained, Alex explains why margin pressure, pricing discipline, and cautious capital allocation will be defining themes in 2026, limiting expectations for near-term interest rate relief.

The discussion then turns to value creation for privately held businesses and how buyers are underwriting acquisitions in today's environment. Alex emphasizes that acquirers are investing in future cash flows—not historical results—making scenario planning, strategic flexibility, and resilience critical differentiators in an M&A process. The episode closes with a review of industry-level winners and losers, with particular emphasis on critical infrastructure services—including power solutions, energy, water, automation, and industrial services—alongside the accelerating role of AI and the geopolitical risks that could reshape global markets in the years ahead.

Key Takeaways

• 2026 is defined by complexity, requiring multifaceted strategies rather than single-path planning.
• Tariffs are a durable feature of the economic landscape, even as their structure continues to evolve.
• Inflation remained muted in 2025, but cost pressures are increasingly being passed through to end customers.
• Buyers prioritize confidence in future cash flows and a company's ability to perform across multiple scenarios.
• Critical infrastructure services—including power solutions, energy infrastructure, automation, and AI-adjacent sectors—are positioned to outperform in a bifurcated economy.

Key Insights

• Effective tariff rates rose sharply in 2025, but real-world impacts were softened through pricing, sourcing, and margin strategies.
• Roughly half of tariff costs were absorbed by U.S. companies, with approximately one-third passed to consumers.
• Interest rate policy is unlikely to provide a near-term catalyst for accelerated capital spending.
• Automation has shifted from a "nice-to-have" to a necessity due to labor constraints and clear ROI dynamics.
• Shifting global alliances and geopolitical tensions represent long-term risks that business leaders must actively plan around.

ℹ️ Learn more about Bundy Group by visiting https://bundygroup.com.

In this episode of Bundy Group Insights, Clint Bundy and Stewart Carlin reflect on a pivotal year in the M&A market, reviewing key developments from 2025 and discussing what business owners should be thinking about as they head into 2026.

The conversation begins with a discussion of the broader M&A environment. While headline attention focused on large, marquee transactions, 2025 was notable for the breadth of global deal activity, with more than 50,000 M&A transactions completed worldwide—a first-time milestone—and approximately 19,503 transactions in North America, the third-highest annual total on record. These figures underscore that market strength in 2025 was driven not just by deal size, but by sustained transaction volume across the middle market.

Clint and Stewart then review Bundy Group's performance in 2025. The firm closed eight transactions totaling approximately $440 million in aggregate value and delivered nearly 50% average premiums on Bundy Group-led sell-side engagements. These outcomes were achieved in a selective, diligence-heavy market through disciplined preparation, competitive processes, and deep sector specialization. Several client engagements are highlighted to illustrate how execution quality and positioning continued to drive strong results.

The episode concludes with a look ahead to 2026, including a sector-by-sector discussion across business and industrial services, technology-enabled services, and healthcare. Alex Chausovsky, President and CEO of 3DM Consulting, joins the conversation to provide additional economic and market context, offering perspective on geopolitics, policy dynamics, AI adoption, and why complexity—rather than outright uncertainty—is likely to define the operating and deal-making environment in the year ahead.

Key Takeaways

1. 2025 was a historic year for M&A activity, driven by record global transaction volume rather than just headline mega-deals.
2. Middle-market M&A remained active despite increased buyer selectivity and higher diligence standards.
3. Bundy Group-led sell-side engagements delivered nearly 50% average premiums, reflecting disciplined preparation, competitive processes, and execution quality. Strategic and financial sponsor buyer confidence remains strong, supported by available capital and continued appetite for high-quality assets.
4. In 2025, Bundy Group closed transactions with a diverse buyer universe, including financial sponsors, sponsor-backed buyers, and strategic acquirers—including international conglomerates such as Hitachi and VINCI Energies.
5. Companies that have prepared for a sale and built the right fundamentals—clear positioning, scalability, and resilient performance—continue to have the ability to achieve premium outcomes in a competitive sale process.

Key Insights

• More than 70% of M&A activity occurred in transactions under $250 million, reinforcing the continued strength of the middle market.
• Buyers remain disciplined and are willing to pay premium valuations for clear outperformers with strong fundamentals and compelling narratives.
• Competitive tension remains one of the most consistent drivers of higher valuations and better long-term strategic fit for sellers.
• Sector specialization is increasingly critical for advisors, particularly in areas such as power solutions, automation, and healthcare services.
• Business owners who plan early and build adaptable, resilient organizations are best positioned to achieve strong outcomes in a sale process. Owners must remain attentive to geopolitical and macroeconomic developments and understand how broader market dynamics can impact their businesses and exit options.

ℹ️ Learn more about Bundy Group by visiting https://bundygroup.com.

In this episode of Bundy Group Insights, Managing Directors Clint Bundy and Drew Thomas bring together two seasoned acquirors in the dermatology and medical aesthetics market: Darcie Surinak, President of AYA Medical Spa, and Evan Heflin, Principal at Gryphon Investors. Both guests offer unique and practical perspectives on the current transaction landscape, what drives valuations, and the characteristics that differentiate high-performing dermatology practices and medical spa platforms.

Together, they explore the rapidly evolving market dynamics in aesthetics and dermatology, including how private equity continues to shape deal structures, competitive tension, and long-term value creation. The conversation dives into operational excellence, leadership continuity, scalability, and the metrics buyers prioritize when evaluating potential acquisitions. Listeners will gain a clearer understanding of how sophisticated strategic buyers and growth-focused private equity groups approach the sector—and what practice owners can do today to prepare for a successful M&A process and maximize long-term enterprise value.

What You'll Learn in This Episode:

• Details about Eagle Merchant Partners, owner of AYA Medical Spa, and Gryphon Investors, owner of Aqua Dermatology.
• Current valuation and competitive trends shaping dermatology and aesthetics M&A.
• The attributes buyers look for in top-performing dermatology practices and medical spa platforms.
• How strategic acquirors and private equity groups differ in their investment philosophies, growth strategies, and culture-building approaches.
• The operational, financial, and clinical metrics that most impact scalability and long-term enterprise value.
• Common mistakes sellers make when preparing to enter the market—and how to avoid them.
• Where leading buyers see the greatest opportunities for expansion over the next 3–5 years.
• Best practices for owners planning for a future sale or seeking to optimize long-term value creation.

This episode offers actionable insights for:

• Dermatology practice owners
• Medical spa operators and clinical leaders
• Investors and industry executives
• Entrepreneurs considering a sale or partnership
• Healthcare practice owners preparing to scale, professionalize or exit their businesses

Whether you're contemplating a near-term exit or planning long-term growth, this roundtable provides a grounded look into what truly drives buyer interest and value in today's dermatology and aesthetics marketplace.

ℹ️ Learn more about Bundy Group by visiting https://bundygroup.com.

In this Buyers Roundtable edition of Bundy Group Insights, host Jim Mullens sits down with industry leaders Mark Grudzien of RapidFire Safety & Security and Ryne Collins of Plexus Capital. Together, they explore acquisition strategies, evaluation frameworks, and what drives strategic and financial buyers in today's fire, security, and life safety markets. The discussion offers an in‑depth look at recurring revenue models, leadership considerations, valuation expectations, and the future of consolidation.

Listeners will gain valuable insights into what buyers prioritize when evaluating targets—ranging from cultural alignment and management team strength to revenue mix, geography, and long‑term growth potential. The conversation also highlights the current M&A landscape, emerging subsectors of interest, and practical advice for founders preparing for a sale or recapitalization.

KEY TAKEAWAYS:

• Buyers prioritize people, leadership, and cultural fit above all else when evaluating potential acquisitions.
• A strong recurring revenue mix and balanced service offering significantly increase a company's attractiveness.
• Value expectations have shifted as sellers become more educated and competitive bidding increases for high‑quality assets.
• Subsectors with recurring revenue—such as alarm monitoring, inspection, and testing—remain especially compelling.
• Technicians will remain essential despite technological advancements; AI will enhance efficiency, not replace field labor.
• Consolidation is expected to continue at a stable pace, with strong interest from new financial sponsors entering the space.
• Founders preparing for an exit should understand their goals, clean up financials early, and work with industry‑specialized advisors.

ℹ️ Learn more about Bundy Group by visiting https://bundygroup.com.

In this episode of Bundy Group Insights, Managing Director Clint Bundy speaks with longtime client and friend Spencer Wiggins, former majority owner and President of Industrial Electric Machinery (IEM). Spencer shares how he turned a small family business into a regional power solutions leader through modernization, acquisitions, and customer-driven growth. He also opens up about leading his firm through the Pacific Consortium—a strategic collaboration among IEM, A+ Electric Motors, and Reed Electric—that created a stronger market presence and led to an exceptional sale outcome. The conversation provides rare, firsthand insights into how business owners can create value, align with the right partners, and position for a premium outcome when it's time to sell.

Spencer's story highlights leadership, resilience, and value creation across the power solutions and broader industrial sectors. The episode provides lessons learned, including how the consortium model provided a competitive advantage and initiatives owners should be taking to best build value in their firm and prepare for a sale.

Key Takeaways:

How one owner transformed a regional electric motor repair business into a diversified power solutions firm through modernization, process improvement, and strategic acquisitions.

Why adapting to evolving customer and industry needs is essential to building a durable, high-value business in the power solutions sector.

How the consortium model—combining IEM, Reed Electric, and A+ Electric Motors—helped enhance market reach and drive a premium valuation in the sale to Integrated Power Services (IPS).

What business owners should consider early when preparing for a sale—from aligning financials and systems to building management depth and credibility with buyers.

The personal and professional lessons Spencer Wiggins gained from growing, leading, and ultimately selling his company—offering practical guidance for other owners planning their own exit.

Learn more about Bundy Group by visiting https://bundygroup.com.

Additional Links:

Bundy Group Advises Three Energy & Power Services Firms in a Consolidated Sale

Consortium Sale: Strategy for Business Owners to Increase Value