The 2025 Mid-Year Market Pulse: 4 Tough Truths Every Founder Should Hear
2025 has continued to reshape how companies grow, scale, and sell. AI disruption has matured. Buyer and Investor expectations have shifted. And growth, once fueled by capital and hype, now demands something operational clarity and strategic focus.
In our latest executive session, “Talent. Tech. Deals. Mid-Year Market Pulse,” our team of experts from Lion People Global: Annette Lawlor (CEO), Olga Blasco (M&A Principal Partner) and Dave Ruane (Director of Client Solutions) broke down the current M&A trends, deal challenges, and valuation shifts they have seen – all based on first-hand experience in the localization, language tech, AI and adjacent industries.
Below are four of the truths they shared. To hear the full story – including live examples, industry-specific guidance, a few uncomfortable truths, and with a splattering of humour – you’ll want to catch the full session.
TRUTH #1: Valuation Multiples Have Sharply Declined
If you’re still benchmarking against 2021 numbers, maybe you’re not reading the room.
“Valuations have reset… Under 10 million in revenue? Maybe it’s 2 to 3, unless you can show clear differentiation, and key profitability.”
It’s not just macro conditions. Buyers have grown more discerning. Multiples are compressing, especially for companies with outdated offerings or unclear value delivery.
But here’s the nuance: this reset isn’t universal. Some businesses are still commanding strong exits. The difference lies in how they tell their story and what’s under the hood.
✅ Takeaway: If you want above-market valuation, it’s no longer about size alone – it’s about clarity, operational discipline, and relevance in an AI-shaped ecosystem.
TRUTH #2: It’s Not Just About EBITDA Anymore
Profit is important, but today’s buyers are looking at more than just clean margins. They want to see how you operate, where you create value, and whether your business is aligned with how the market is evolving.
“Defending revenue at maximized profitability is where it’s at.”
✅ Takeaway: Align financial health with operational strategy. EBITDA helps, but context, readiness, and narrative win deals in the ecosystem.
TRUTH #3: Revenue Growth Is Harder Than Ever
Top-line expansion is no longer a given, especially in industries experiencing saturation, slower client decision-making, or AI-related churn. But here’s the catch: growth is still possible if you know where to look.
“There is a window of opportunity… You can take your clients by the hand and say: Let’s pursue this AI wave together.”
Certain verticals, like life sciences and regulated content, are still catching up. That’s where strategic sellers are making gains while others stall.
✅ Takeaway: Growth in 2025 isn’t about scaling fast – it’s about identifying lagging-but-loyal verticals and becoming the partner that leads them through change. That’s where real revenue momentum is being built right now.
TRUTH #4: Sector-Specific Knowledge Is a Deal Advantage
Generic sell-side support is costing companies real money, and in some cases, real exits. Founders working with brokers who don’t understand language services, content tech, or AI-driven models are often mismatched with buyers who want something else.
“We know better than a sell-side broker outside of the industry… There are verticals where AI adoption is slower – and that creates opportunity, if you understand the space.”
It’s not just about contacts. It’s about context. Industry nuance can mean the difference between a stalled negotiation and a successful deal close. This has been happening more this year.
➡️ In the full session, we explain what buyers in our sectors actually want – and how to speak their language. You can watch this below.
Conclusion: Are You Aligned With the New Reality?
The companies winning in 2025 aren’t necessarily the biggest, flashiest, or even the most profitable. They’re the ones who:
- Understand how AI is reshaping value
- Know where growth is (and isn’t) possible
- Are realistic about what today’s buyers actually want
- Work with people who understand their sector deeply
“Information is power… Uncomfortable truths are uncomfortable for a reason. But if you understand what’s going on, you can act. You have to have an honest broker who will tell you that – because you’re going to hear it eventually.”
This session was exactly that – an honest, no-spin look at where the market stands. If you’re preparing to raise, sell, or scale, it’s a must-watch.
